Workers Compensation covers the medical expenses and lost income of your employees if they are hurt in the course of doing work-related activities. It is important for IT companies to have Workers Compensation in all the states in which they have employees.

Workers Compensation coverage is required in all states as soon as you hire W-2 employees. 1099 contractors must show evidence of their own Workers Compensation, or you are obligated to cover them too.

If you send one of your employees to deliver something to a client, and on the way the employee is involved in a car accident and breaks his leg, your Workers Compensation insurance will pay for that employee's medical bills, disability, and possibly, pain and suffering.

In the technology and computer fields, Workers Compensation claims involving Ergonomics (carpal tunnel syndrome and other muscular/skeletal conditions caused by posture) are on the rise. Overall, most employee related accidents are automobile accidents.