Workers' compensation insurance isn't optional when you're placing consultants with clients — in most states, it's legally required, and in all states, placing consultants without it creates significant liability exposure.
What Workers' Comp Covers
Workers' compensation covers employees (including placed consultants classified as W-2 workers) for workplace injuries and occupational illnesses. It provides medical benefits and wage replacement for injured workers, and it protects the employer from lawsuits related to those injuries.
Who Is Required to Carry It
Requirements vary by state, but in most states, any business with employees — including staffing and consulting firms that place workers — is required to carry workers' compensation insurance. The requirements typically apply as soon as you have one employee (in some states, as soon as you have any employees at all).
Why It Matters for Your Client Relationships
Most corporate clients will require proof of workers' compensation coverage before a consultant can begin work on site. Attempting to place consultants without coverage isn't just a legal risk — it's a relationship risk that can cost you the client entirely.
How HR2HR Handles This
Business insurance — including coverage relevant to placed consultants — is included as part of the HR2HR partnership. You don't need to source, apply for, or manage this coverage yourself. It's in place before your first placement begins, and we keep it current as you grow.