A Look at What Type of Small Businesses Need Workers Comp

Workers’ compensation is a type of insurance that is required by law in most states for businesses that have employees. It provides benefits to employees who are injured or become ill as a result of their job. 

Most small businesses are required to have workers’ compensation insurance, regardless of their industry or the number of employees they have. This includes businesses in retail, construction, manufacturing, healthcare, and many other industries. 

Some states also require certain types of businesses, such as those in the construction industry, to carry higher levels of workers’ compensation insurance.

Here is a detailed breakdown of the different types of small businesses that could do with workers’ comp coverage:


Small retail businesses need workers’ compensation insurance because it covers employees who are injured or become ill as a result of their job. This can include injuries or illnesses that occur on the job site or as a result of job-related activities, such as lifting heavy boxes or spending long hours on their feet.

Examples of small retail businesses include:

  • Convenience stores
  • Clothing stores
  • Jewelry stores
  • Bookstores
  • Gift shops
  • Toy stores
  • Shoe stores
  • Sporting goods stores
  • Pet stores


Construction is considered a high-risk industry and employees are at a higher risk of injury or illness due to the nature of the work. Construction workers are prone to injuries from falls, accidents involving heavy equipment, exposure to hazardous materials, electrocutions and other risks.

Additionally, worker’s comp can help the business comply with state regulations, which often require construction companies to carry workers’ compensation insurance.

Click here – Everything You Need to Know About Home Insurance Before Buying a Home


Manufacturing is also considered a high-risk industry, exposing employees to various injuries. This can include injuries from working with heavy machinery, exposure to hazardous materials, repetitive motions, and other risks.

Examples of small manufacturing businesses include:

  • Food and beverage manufacturers
  • Pharmaceutical manufacturers
  • Textile manufacturers
  • Plastic manufacturers
  • Metal manufacturers
  • Furniture manufacturers
  • Electronic manufacturers


Employees in the healthcare industry are at risk of injuries and illnesses. There are several ways healthcare professionals can get injured, including when lifting and transferring patients, exposure to infectious diseases, and stress from long hours and demanding work.

Examples of small healthcare businesses include:

  • Medical clinics
  • Dental practices
  • Physical therapy offices
  • Pharmacies
  • Home health agencies
  • Hospice care providers

Click here – 5 Struggles of Growing a Coaching Business


The hospitality industry employees can suffer injuries from slips, trips, and falls, burns from kitchen equipment, or repetitive motions.

Examples of small hospitality businesses include:

  • Restaurants
  • Hotels
  • Bed and breakfasts
  • Cafes
  • Bars
  • Catering companies
  • Event venues

In Conclusion

Workers’ compensation insurance is important for small retail businesses because it can help cover the costs of medical treatment, lost wages, and other expenses related to an employee’s injury or illness. Without this insurance, the business may be held liable for these costs and it could be a significant financial burden.

Additionally, it provides peace of mind for the employer knowing that should an accident happen, their employees will be taken care of. It can also help avoid disputes and lawsuits by providing a way for employees to receive benefits for their injuries without having to go through the legal process.