It is one of the most common questions small business owners ask: do I really need workers comp if I only have one employee? In most East Coast states, the answer is yes. Here is what you need to know.
One Employee Usually Means You Need Coverage
New York, New Jersey, Connecticut, Massachusetts, Pennsylvania, Maryland, Virginia, and most other East Coast states require workers comp coverage as soon as you have one employee. There is no grace period and no minimum number of hours. If someone works for you and they are an employee, you typically need coverage from their first day.
States with Higher Thresholds
A few states have higher employee thresholds. Florida requires coverage in non-construction industries once you have four or more employees. North Carolina and South Carolina require coverage at three or more employees. Georgia requires coverage at three or more employees as well. If you are in one of these states with only one or two employees, you may be technically exempt, though coverage is still strongly recommended.
The Risk of Going Without Coverage
Even in a state where one employee does not legally require coverage, going without leaves you personally liable for any injury that employee suffers on the job. Medical bills, lost wages, and potential lawsuits can far exceed the cost of a workers comp policy. For most small businesses, the premium is modest and the protection is essential.
How Much Does It Cost for One Employee?
The cost depends entirely on the type of work your employee does. One office employee might cost a few hundred dollars a year to cover. One roofer might cost significantly more. The only way to know your actual cost is to get a quote.
Get a Fast Quote from Comp Matters Inc.
Comp Matters Inc. gets workers comp quotes quickly for small businesses across the East Coast. Call (631) 248-2500 and we can often have options to you same day.
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