Workers' compensation insurance isn't required by law?
Currently, numerous states have made it mandatory to provide workers' compensation insurance. There are several worker exemptions, so check with your state to see if coverage is required for your company.
Deciding to forego workers' compensation insurance exposes your company to significant financial risk. You could be sued for workplace accidents, and you'll almost certainly be penalized for disobeying the law.
It is important to take into account that workers' compensation insurance covers both your employees and your local company. An employee who receives benefits, for example, cannot sue you for their injuries or lost income provided your insurance complies with state law.
Nevertheless, they can sue you for matters that aren't covered by your workers' compensation policy. Your policy also includes employer's liability insurance, which covers court costs and legal fees if you're engaged in a lawsuit.