Does My Small Business Need Workers' Comp in Georgia?

By McAdams Insurance Agency · August 2026 · 3 min read

Georgia's workers' compensation rules catch a lot of small business owners off guard, mostly because the threshold is lower than people expect. Here's a plain-English overview — for the exact specifics of your situation, it's worth confirming directly with us or an attorney.

Georgia's general requirement

Under Georgia law, most employers with three or more employees — including part-time employees — are generally required to carry workers' compensation insurance. That threshold is lower than many other states, which is why it's worth checking even if you consider your business “small.”

What counts as an “employee”

This typically includes part-time staff, not just full-time employees. It's a common misconception that only full-time workers count toward the threshold.

What happens if you're required and don't have it

Operating without required workers' comp coverage can expose a business to significant penalties and leaves you personally exposed if an employee is injured on the job — medical costs and lost wages would otherwise come directly out of the business.

Why some businesses carry it even when not required

Even businesses under the threshold often choose to carry workers' comp voluntarily, since it protects both the business and employees if an on-the-job injury happens, and can also be a requirement for winning certain contracts or working with certain clients.