Workers Compensation Insurance is required by regulation in most states when you have W2 employees. In some states the requirement may include that you cover your 1099 contractors. Workers Compensation insurance covers your employees’ medical and disability expenses related to work-related illness and on-the-job injuries. In some states, owners, officers, partners and other principals can decline to participate in their own companies’ workers’ compensation coverage.
Employers Liability coverage, also included in these policies, protects your company should an employee claim that his or her injury or illness was caused by your company’s negligence or failure to provide a safe workplace.