Does Your Business Need Workers’ Compensation?


If you are a new business owner there is no doubt you have several questions regarding insurance. Insurance can seem a mysterious thing. Policies are long and sometimes confusing to read. Certain insurances are cut and dry like life insurance. You know exactly what that is for. But what is workers’ compensation insurance and does your business need it?

The What

If your business has one or more employees that are not partners or owners then you need workers’ compensation coverage. This type of insurance covers your employees’ medical costs should they get injured on the job. It may also cover lost wages if they are required to miss work. Workers’ comp gives both you and your employees’ peace of mind. Your employees know they are covered should they experience a work-related accident, and your business is protected because it eliminates the employee’s need to file a law suit against your business for negligence.

The Where

Texas does not mandate businesses to carry workers’ comp but many states do. Even if a state does not mandate it, it is for your own protection. Some customer’s may choose not to do business with you if they find out you don’t carry it. If you are self-employed there is no need for workers’ comp. For small businesses workers’ compensation insurance policy options are sometimes limited.

The Cost

The cost of this type of insurance varies and is based on risk classification for the job in question. For instance, a secretary may be low risk, while a construction worker would be higher risk than a secretary. The premium for the secretary would be lower than that of the construction worker. Premiums are also based on such factors as safety history and whether or not you offer health insurance coverage.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton office today at 972-492-8500.