Workers compensation insurance, also known as workers comp, pays for lost wages and medical expenses when employees become injured or ill as a direct result of their employment. For businesses, it offers protection against lawsuits and facilitates the return to work of injured employees in a safe and timely manner.

When an employee suffers an injury or illness at work, the workers compensation insurance covers the following:

*Medical expenses to treat the injury or illness

*Cash benefits to compensate for lost wages

*Disability benefits if the employee becomes disabled

*Funeral expenses if the injury or illness causes death

If you have no employees, you are not legally required to buy workers compensation insurance.

However, keep in mind that your personal health insurance may not cover you for injuries sustained while you're working. It also won't replace any lost income should an injury or illness force you to take time off and suspend business operations.

Even if you're not legally required to have coverage, it's worth giving careful thought to the risk of operating your business without workers compensation insurance