PrintBecause workers' compensation is heavily regulated on the state level, the workers' compensation system ensures that businesses carry enough insurance to cover the costs of work-related injury. So unlike most types of business and personal insurance, it's very difficult to find yourself underinsured.
Workers' compensation insurance is directly related to the size of your work force and is calculated by your payroll. As long as your total payroll amount is correct and you are insured with a reputable carrier, it is very difficult -- and theoretically impossible -- to be underinsured for workers' compensation. Each state performs mandatory audits to ensure that companies are carrying the appropriate level of workers' compensation coverage.