For most businesses, workers compensation programs are a requirement. The specifics of the laws vary from state to state. One thing is for sure though, it is crucial to every business that hires employees.
Workers compensation coverage helps pay for claims against your business when an employee suffers an injury on the job.
In many places, you have to have workers compensation for your employees. If you forego it, then you may have to deal with legal consequences. For instance, you may face jail time or have to pay a fine for not having insurance.
If you do not have workers compensation, as the business owner, you may be personally liable. This means that you have to pay for any medical bills out of pocket, not to mention lost wages. If the employee files suit, then you also may have to pay for pain and suffering, not to mention your own legal fees. Now, if you are required by law to have workers compensation programs, you may also suffer a fine.
Even if you think that you are cutting corners or saving money by not investing in workers compensation programs, you may end up paying more in the end. After all, legal fees and fines cost more money than the insurance itself.