Worker’s compensation is something that many small and medium-sized businesses are still confused by. There are numerous laws on the books in every state, each with its stipulations and requirements for business owners regarding how they protect themselves and their employees in the case of a workplace accident or injury.

Wondering what types of industries need workers’ comp insurance the most?

Here are ten where it is essential, or you can click to learn more:

1. Contracting and Building Industry

It is impossible to work in this industry without some type of coverage for laborers. Businesses like HVAC, plumbing, electrical, lawn care and maintenance, remodeling/renovation, and many others must have workers’ compensation.

2. Medical and Healthcare Industry


It is either required or in your best interests to have workers’ comp insurance if you own or operate any of the following businesses (as well as many others) within the health and medical industry:

  • Dental laboratories
  • Blood banks
  • Testing and diagnostics centers
  • Dialysis providers
  • Vet clinics

3. Food and Beverage Industry

The food industry is a wide-ranging field that includes not only the customer service aspect of the business but also the manufacturing and delivery side. Companies that need employee coverage in this industry include restaurants, bars, caterers, coffee shops, and many others.

4. Educational Service Industry

Companies that offer educational services consist of these and several others:

  • Computer training
  • Management training
  • Language schools
  • Fine-arts academies

5. Hospitality Service Industry


The hospitality area of business employs many people, many of whom often work by themselves or in small groups (maids, maintenance people, courtesy drivers, etc.). It also has large buildings with many workers going up and down floors all day performing myriad tasks. Coverage in this industry is essential.

6. Personal Service Industry

The personal service industry consists of the following types of businesses, as well as many others:

  • Barber shops/beauty salons
  • Funeral homes
  • Tanning salons
  • Pet grooming
  • Self-storage

7. General Retail Industry

This is another all-inclusive industry that covers a large span of businesses. Examples of retail providers that should have workers’ compensation plans are grocery stores, convenience stores/gas stations, laundromats, liquor stores, pet stores, pharmacies, and much more.

8. IT and Tech Industry


The IT field covers data processing, network installation/repair, graphic design, office machine installation/repair, and several others.

9. Financial Service Industry

Financial services are an ever-growing field, especially in the digital age, with all companies offering their services online. Businesses in this area include:

10. Clothing Retail Industry

Similar to the general retail industry, the clothing retail industry encompasses a large, specialized field all its own. Businesses such as clothing stores, dry cleaners, bridal shops, shoe stores, tailors, and many others all need workers’ compensation coverage.

11. Agriculture and Farming


The agriculture and farming industry poses unique risks to workers, including exposure to heavy machinery, handling of livestock, working with pesticides or chemicals, and performing physically demanding tasks.

These factors increase the likelihood of injuries such as slips and falls, equipment accidents, repetitive strain injuries, and exposure to harmful substances. Workers’ compensation insurance is essential in this industry to provide medical coverage, wage replacement, and rehabilitation services to employees who suffer work-related injuries or illnesses.

12. Waste Management and Recycling

The waste management and recycling industry involves various occupational hazards, including exposure to hazardous materials, heavy lifting, operating heavy machinery, and working in challenging environments. Workers in this industry are at risk of injuries such as cuts, strains, chemical exposure, and slips and falls.

The physically demanding nature of the work and potential exposure to biohazards highlight the importance of having workers’ compensation insurance in place. It helps ensure that employees are protected and receive the necessary medical treatment and wage replacement if they experience work-related injuries or illnesses. It also offers liability coverage for the employer in the event of claims arising from workplace accidents.

Even if you already know that you need workers’ comp, you probably still have a lot of questions about it. The best thing you can do for yourself and your employees is to get in touch with experts who know exactly what you need and can answer all your questions.