Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Wisconsin

In Wisconsin, most businesses with employees are required to have workers compensation insurance. This coverage helps protect your business and employees by covering medical expenses and lost wages if an employee is injured on the job.

When Workers Compensation Insurance Is Required

• Businesses with employees: If you have one or more employees (full-time, part-time, or seasonal), you generally must carry workers compensation insurance.
• Construction contractors: Contractors must have workers compensation coverage regardless of the number of employees.
• Exceptions: Sole proprietors and partners without employees may be exempt but can opt in voluntarily for coverage.

Operational Considerations

• Insurance carriers: Obtain coverage from an authorized Wisconsin workers compensation insurance provider.
• Recordkeeping: Maintain accurate injury and claim records to comply with state reporting requirements.
• Payroll integration: Ensure payroll systems account for workers compensation premiums, which are often based on employee wages and job classifications.
• Compliance monitoring: Regularly review your employee count and business activities to stay compliant with insurance requirements as your business grows or changes.

As of 2026, staying current with Wisconsin Department of Workforce Development guidelines will help you maintain proper workers compensation coverage and avoid penalties.