Workers compensation insurance protects an employer from liability for an accident involving an employee. The insurance coverage pays benefits to your employees if they are injured on the job. It will cover their medical bills, a portion of lost wages, vocational rehabilitation, and death benefits. The coverage amount is established by state law and benefits don't vary from company to company within the same state.

Workers compensation insurance covers all the employees of the business. Special provisions must be made if an employee works out of state. It may cover the business owner if the business is a corporation and the owner is actively involved in the business.