Do Small offices Really Need Worker’s Compensation?

Services for Real Estate Pros Insurance NPN # 13379201

I get this question a lot. I have a small real estate company with 2 employees; do I need to carry workers compensation?  

No matter what industry your business is in and what your employees do as part of your business, there is always an opportunity for a work-related injury to occur.

 Employees who are onsite can trip and fall on the way to the restroom. Remote employees can get carpal tunnel syndrome. No matter what they do, or where they do it, your employees can be injured while on the clock.

If you have an employee who is injured while working, you are responsible for paying for their medical treatment, supplementing their lost income while they are unable to work, and helping them get assistance in becoming re-employed.

Workers compensation insurance not only takes that heavy responsibility off your shoulders and caps the amount of out-of-pocket expense you’ll encounter when faced with an injured employee, it also ensures that the employee gets the benefits and treatment they deserve no matter the financial situation of your company.


Each state handles their workers compensation requirements differently. Many states require businesses to carry the coverage even if they only have one employee, while other states require coverage when you have a certain number—such as Florida, a state that requires workers compensation insurance for employers with four or more employees.   


If you don’t get coverage when required you could be facing expensive daily fines until you do.

 If your business is located in a state that requires coverage only for multiple employees, and your current number falls below their requirements, you may not have to concern yourself with potential fines but you are at risk of something much, much worse: the responsibility to pay for all an injured employee’s treatment and lost wage expenses without the benefit of an insurance policy to assist you.


Workers compensation insurance offers you an affordable way to meet your legal and moral obligations without bankrupting your company.

 If you have one or more employees, give your agent a call and discuss how affordable and helpful workers compensation insurance can be.

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Comments (11)

Edward Gilmartin
CRE - Boston, MA

I think there is a difference in classification of workers...independent contractors and employees which could be secretaries etc.

Feb 21, 2013 09:53 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Ed, yes, there are big differences between W-2 employees( receptionist, secretaries, Admin personnel) and independent contractors ( Real Estate Agents) if someone is injured in the work place, the owners can be responsible for paying for their medical treatment, supplementing their lost income while they are unable to work

Feb 21, 2013 10:04 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730
We are in such a litigious society. It is just smart to protect yourself as a business owner and of course your employees, too.
Feb 21, 2013 11:22 PM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Lots of great points you shared with all of us. You certainly know this stuff like breathing! Two of the three companies that I own, have employees and we have all on workers comp.

Feb 22, 2013 01:01 AM
David Cole
David Cole CPA - Orlando, FL
David Cole CPA
Excellent points. We carry plenty of work comp. Better to be safe than sorry
Feb 22, 2013 02:44 AM
Amy Stockman
Lakeridge Land Suveying & Mapping, LLC - Winter Garden, FL
Lakeridge Surveying

Workers comp has saved me several times. we have had some crews injured on the job. It is good to have

Feb 22, 2013 09:19 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Frank looks like there is a big risk for an employer that does not carrying Workman's Comp.

Feb 22, 2013 09:34 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

Opting in to private or public workers comp programs needs to be discussed with an insurance professional....hiring outside (private) contractors is the KEY

Feb 22, 2013 07:11 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Debbie, It sad that it has become that

David, good for you. I hear that every day

Amy, That is exactly what it is there for

George, I have seen lack of insurance when someone needed it close a business

Wallace, That is so true, I hear that all the time. someone will say, "my buddy has a business and doesn't carry this insurance and he is fine" roll the dice

Feb 22, 2013 10:04 PM
Sabrina Schirmer
National Insurance Solutions, LLC - Winter Haven, FL

Workers Compensation coverage it to protect them from any employee accidents while at work.

Feb 23, 2013 09:29 PM
Mike Lintro

I'm not sure what the laws are like in Utah, but I worked for a very small company, and they said they were required to have workers comp. I never hurt myself, as I just worked behind a desk, but I guess it was nice to know that it was there if I ever needed it.

Oct 21, 2014 07:00 AM

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