Even if you are covered by one of the exemptions, you should consider having workers' compensation insurance anyway. It typically is very affordable coverage that could really save you a bundle if someone got injured while working for you. Not only is workers' compensation coverage the right thing to do, it can protect you and your business from a devastating claim in its absence.

You'll also need other general liability insurance for your business. It's not always your employee who poses potential liability. If an employee of an independent contractor you hired to work on your house gets injured, you hope the independent contractor has coverage for the employee because if there is no coverage, its injured employee may begin looking for other sources of compensation and you will be in his/her direct line of sight.

(Reviewed 9-08)