There are pros and cons to hiring employees. Pro: You take on someone who essentially helps your business grow. Cons: Everything else.
Employees are complicated. There are so many things to consider. Do you have a break room area nice enough for them to make their morning matcha in? Do you have a company culture full of takeaway Fridays and staff nights out, or are you boring?
And then there’s the nitty-gritty (somewhat boring to employees) behind-the-scenes considerations beyond whether you’ve got an Instagrammable office. Formalities like workers’ compensation, equality and inclusion policies, etc.
Out of all of those, for us, workers’ compensation is at the top of the list of essential considerations before you hire employees. Read on to learn about it.
Workers Compensation Explained
Workers’ comp protects your business and your employees. If someone gets injured at work or develops a work-related illness, you turn to workers compensation insurance. It’ll cover their medical bills and lost wages and provide you with protection from being sued. Well, so long as you have the correct cover.
The states govern the requirements, but the core idea is the same. If you have one or more employees, you need workers’ comp. Most policies are private, but you can sometimes apply for state funding.
Even if your work environment feels low-risk, you can’t assume injuries won’t happen. Trips, pulled muscles, cuts, and desk work-related back conditions are all common in every industry.
Why You Need It
In most states, you’re legally required to carry it as soon as you hire your first employee. Texas is actually the only state that doesn’t require businesses to have employee coverage due to the Texas Labor Code Annotated § 401.001 et seq. And that doesn’t mean that if you have a business in Texas, your employees can file a lawsuit if they’re injured or fall ill at work; it just means you don’t legally have to have insurance. They can still take you for every dollar you have.
And it’s not just for medical bills. It’s penalties, court costs, and possible damages. It doesn’t matter if the injury was minor or the worker was careless.
Offering workers’ comp shows you value your staff and builds trust. The benefits far outweigh financial ones: you’ll hire and keep good workers.
The Most Common Uses of Workers’ Comp
As we’ve said, most claims come from basic tasks. Someone bends the wrong way, and their back goes out. A coffee spill causes a slip. Repetitive typing causes wrist pain. These are normal parts of daily work, and they can be covered under workers’ comp.
Other claims include:
- Illnesses caused by poor ventilation
- Eye strain from screens
- Stress or anxiety from high-pressure roles.
- Falls from heights
- Injury from workplace objects and machines
You’d be wrong to think an employee is being dramatic if they complain about eye strain. How often do you give your employees the recommended time away from the screen? It’s 5 minutes an hour, in case you didn’t know.
What Not to Do When Hiring Staff
Don’t wait until someone is injured to start thinking about workers’ comp. Get it in place before day one. It’s so quick and easy to set it up online.
Don’t assume you can avoid it by calling someone a freelancer. They may still be classified as an employee in some states and legal cases if you control their hours and assign their tasks. If they’ve signed a subcontractor agreement, they definitely do have a legal right.
Always check what’s included. Some plans exclude part-time workers or specific roles. Others have limits that won’t cover major injuries. They always state it clearly, so always read the fine print.
In reality, the most you need to know about workers’ comp is that if you have an employee, you take out the policy with the correct level of coverage. You can use online forms for a quote, but we’d always recommend calling an advisor to finalize the policy and ensure you’re covered for everything needed.
Ayushi Saini 
Punit