Workers' Compensation is a no-fault insurance system that provides wage replacement, medical, and rehabilitation benefits to employees that are injured at work. Being no-fault, it requires the employer to be responsible for the payment of benefits irrespective of who or what caused or contributed to an injury or illness that is connected with a job.
Almost every state requires that employers purchase workers' compensation insurance. Coverage of workers tends to be fairly comprehensive, although state workers' compensation laws often exempt domestic, farm, and other "casual" workers. Moreover, independent contractors, being self-employed, are not covered by these laws.
The laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services, and how the system is administered vary from state to state. Check with your state about what the laws are for your business. If you do business in more than one state, you will need to comply with the laws in each state in which you have offices with permanent employees.