Workers' Compensation Insurance

This insurance covers employees in case of work-related accidents. Most states require you to have workers' compensation insurance for any employees, even part-timers. Some states only require workers' comp insurance for companies with three or more employees.

To keep the cost of your workers' compensation as low as possible, be sure your employees are classified properly. If you do not inquire about this, all your workers may be lumped into the highest - and most expensive - category of coverage. Some states also require you to purchase disability insurance that covers employees in case of any accident regardless of where it happens.