Do I need workers compensation insurance for my apartment building?

Workers compensation insurance is required in nearly every state for businesses that have employees. For apartment owners, this includes maintenance technicians, groundskeepers, on-site property managers, leasing agents, and any other staff employed directly by the property owner or management entity. The specific threshold for when coverage becomes mandatory varies by state; some states require it with even one employee, while others set the threshold at three, four, or five employees. Texas is the only state where workers compensation coverage is entirely voluntary for private employers, though even there most apartment owners carry it to limit tort liability.

Workers compensation covers medical expenses, lost wages, rehabilitation costs, and death benefits for employees who are injured or become ill as a result of their job duties. For apartment building employees, common workplace injuries include falls from ladders or roofs, injuries from operating maintenance equipment, exposure to hazardous materials, and repetitive strain injuries. OSHA's general industry standards (29 CFR 1910) apply to apartment maintenance operations and establish requirements for fall protection, hazard communication, lockout/tagout procedures, and personal protective equipment that directly affect the types of injuries workers compensation claims address.

Even if your state does not require workers compensation for your number of employees, carrying the coverage is generally advisable. Without it, the apartment owner is personally liable for the full cost of employee injuries. A serious injury could result in medical bills, lost wage claims, and legal costs that far exceed the annual premium for a workers compensation policy. Additionally, if you use a property management company, confirm whether their employees are covered under their own workers compensation policy.