Is workers' compensation required for my small family business?

min read
Opinions expressed by Entrepreneur contributors are their own.
Generally, you need to have workers' compensation coverage for any employee you hire, even if it's just one employee or just temporary employment.

However, a number of states have exemptions for immediate family members or close relatives (and the degree of kinship may vary). To qualify for the exemption, you must file an affidavit with your local workers' compensation board -- you can't simply do nothing.

You should consult with your attorney or your insurance agent, broker or carrier regarding the specifics of your situation and your options.
More from Entrepreneur
Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs

Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.

Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Use code CAREER2021 through 4/17/21 to save on our collection of recommended career books, including:
  • Career Rehab
  • Entrepreneur Voices on Careers
  • The New Employee Manual
  • And more

Latest on Entrepreneur