Why do I need workers' comp insurance?

In most states, the law requires most businesses having one or more employees to have workers’ compensation insurance. In fact, many states employers are required to post notice somewhere in the workplace advising employees of the identity of the insurer and how to report a claim. Employers can be fined for not carrying workers’ compensation insurance and stop orders can be issued, depending on state labor commissions, preventing employers from using employee labor until coverage is obtained.