Workers compensation insurance is required in all states.It pays medical expenses and lost wages that result from job-related injury or illness, which is typically the largest component of employees’ risk management programs.Workers Compensation Insurance is not health insurance and is designed specifically for injuries sustained on the job.

No matter how small your business is, and whether or not Workers Comp is required, coverage is good for you, your employees and your business.How to Reduce Your Workers Compensation CostsIf you own a small business and have at least one employee besides yourself, by law you have to carry workers compensation insurance.The going average cost in the private sector right now is around $2.30 for every hour worked, times the number of employees.In today’s tough business environment, saving every penny and avoiding unnecessary costs can determine whether or not the doors stay open.When you purchase Workers Comp you pay premiums to an insurance provider or, in some cases, a .

Only four states – Wyoming, Ohio and North Dakota – have completely state-run programs.Many states will provide Workers Comp insurance but also allow private insurance companies to insure employers and employees.Here are 8 ways small businesses can save money on workers compensation insurance.