Workers' compensation insurance: definition, example, and why it matters
Required by law for most employers (rules vary by state and employee count). Premiums vary by trade — roofing is expensive, office work is cheap.
Short definition. Insurance covering employee medical bills and lost wages from work-related injuries.
Category. Workers' compensation insurance is a legal term used by service businesses when billing customers.
How Glo Invoice handles it. Glo Invoice builds workers' compensation insurance into the invoice itself, so you don't track it on paper or in a spreadsheet.
Frequently asked questions
What does workers' compensation insurance mean?
Required by law for most employers (rules vary by state and employee count). Premiums vary by trade — roofing is expensive, office work is cheap.
Related terms
General liability insurance — Insurance covering claims for bodily injury and property damage you cause to others.
1099-NEC / 1099-MISC — US tax forms reporting payments to independent contractors and other non-employees.
