Operating a business is a tough job, but operating without the proper insurance coverage could be risky, and it could also be against the law. Worker's compensation provides payment for medical treatment costs and partial lost wages to your employees if injured on the job. The coverage is 'no fault' and should be provided for everyone on your payroll. The cost of the coverage is based on the type of work performed and the amount of the payroll. There can be severe penalties for employers that operate without this coverage because it is required by most states. For more information about the worker's compensation requirements in your state, consult an insurance professional.