Workers’ Compensation

A small business owner’s guide to workers’ compensation insurance

Support Form (#3)

How does workers’ compensation insurance work?

Every state has a unique set of workers’ compensation law that employers and employees must follow, which ensure that employers provide coverage for the cost of work-related injuries or occupational diseases, regardless of employee negligence.   

Any injuries or illnesses that relate to the job duties or employment can be used for an employee to benefit from the insurance.  Injuries caused by lifting heaving equipment, slipping on a wet or oily surface or sustaining injuries due to fires or explosions are covered in the workers’ comp insurance.   

The workers’ comp insurance will not cover an employee for an act out of the scope of employment, for example, playing a sport of a day off.  

Who needs workers’ compensation insurance?

In almost every state, workers’ compensation insurance is needed and a requirement by law, but some exemptions may exist, so it is best to check depending on your state, which coverages are mandatory for your business.   

Without workers’ comp coverage, your business will be at a high financial risk when facing a lawsuit for workplace injuries as well as fines for breaking the law.  Both your business and your employees will be covered under the workers’ comp insurance which is beneficial if an employee who receives benefits wants to make a claim.  They cannot sue you for injuries or lost wages if your insurance is compliant.  However, the employee may still be able to sue you for things that are not covered under the workers’ comp portion of the policy. 

How to get workers’ comp insurance through Firefly?

Usually, most states allow a business to purchase workers’ comp insurance through private insurers like Firefly.  We can help a wide range of businesses get the coverage they need under their states’ workers’ compensation laws.  You can choose to contact us via phone or start a quote online with a licensed agent about your options.   

Common questions

What doesn’t workers’ compensation cover? Who is covered by workers’ compensation? Does a sole proprietor need workers’ compensation? Are contractors and volunteers covered under workers’ comp?

Injuries that occur intentionally or injuries that occur outside of work, while commuting to and from work, or due to intoxication or substance abuse are not covered under workers’ compensation cover.   

Who is covered varies based on where the business operates.  Employees who are seasonal workers may not be covered by worker’s compensation.  Get in touch with us today to find out more.   


Most states do not require sole proprietors to carry workers’ comp but these laws vary from state to state. 

Contractors and volunteers can be entitled to workers’ compensation benefits if they’re injured or become ill on the job.