When is Workers' Compensation considered necessary?

Workers' Compensation is considered necessary when a contractor employs one or more full or part-time employees. This requirement is in place to ensure that employees who suffer from work-related injuries or illnesses are provided with financial benefits, including medical care and wage loss compensation, regardless of fault. The law mandates that employers have Workers' Compensation insurance to protect their employees while on the job and to safeguard employers from lawsuits related to workplace injuries.

The requirement applies not only to full-time employees but also includes part-time workers, reflecting the understanding that any employed individual can be at risk for job-related injuries. Therefore, it is essential for any contractor or business with employees to ensure they comply with this legal requirement to foster a safer working environment and to fulfill their obligations under labor laws.