Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Georgia

In Georgia, most businesses with employees are required to have workers compensation insurance. This insurance covers medical expenses and lost wages for employees injured on the job, helping protect both your workforce and your business operations.

When Is Workers Compensation Insurance Required?

• General Requirement: If your business has three or more employees, you must carry workers compensation insurance.
• Construction Industry: If your business operates in construction, the threshold is one or more employees.
• Employee Classification: Both full-time and part-time employees count toward the employee total.

Operational Considerations

• Business Registration: When registering your business, ensure you understand your classification and insurance obligations to avoid penalties.
• Payroll Management: Track employee counts accurately to maintain compliance with insurance requirements.
• Insurance Policies: Work with licensed insurers familiar with Georgia’s workers compensation system to obtain appropriate coverage.
• Recordkeeping: Maintain detailed injury and claim records as required by state regulations.

Additional Notes

As of 2026, businesses not required to carry workers compensation insurance may still choose to do so voluntarily to protect their employees and reduce liability risks. Noncompliance can lead to fines and potential business operation interruptions.