Do small businesses have to carry workers' compensation insurance?

In almost every US state, yes — businesses with employees must carry workers' comp; Texas is the principal voluntary state.

In nearly all US states, businesses with one or more employees are legally required to carry workers' compensation insurance as soon as the first person is hired, whether full-time or part-time. Texas is the main exception, where private employers may opt out; a few other states exempt very small firms or specific industries. Rules differ on household workers, farm labor, and independent contractors, and penalties for being uninsured include fines and personal liability for injured workers' costs. The US Small Business Administration's insurance guide directs owners to their state workers' comp office for the binding rules, which is the correct primary source.