If you think you don't need workers' compensation insurance, you may be headed for a fall.
Don't fall into the trap of assuming that just because you're homebased, you don't need workers' compensation insurance. In most states, if you have three or more full-time employees, you're required to carry workers' comp. And you may want to buy the coverage even if it's not mandated.
What's the point? In most states, if someone's injured on the job, workers' comp insurance covers lost wages (after a typical waiting period of seven days) and pays all medical expenses related to the injury, says Madelyn Flannagan, research and information director for the Independent Insurance Agents of America. In addition, individuals covered by workers' comp can't sue their employers over an on-the-job injury, except in cases of gross negligence.
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