Workers compensation insurance, commonly known as workers’ comp, is insurance that covers medical expenses and a portion of lost wages for employees who become injured or ill on the job. Coverage also includes employee rehabilitation and death benefits.
Each state has its own unique set of workers compensation laws that employers must follow. These regulations help ensure that employers provide coverage for the cost of work-related injuries or occupational diseases, regardless of employee negligence. An employee can only receive benefits if their injury or illness relates to their job duties or employment. Workers comp insurance could cover injuries caused by lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury due to fires or explosions. If an employee isn’t acting within the scope of their employment and becomes injured, such as playing football with friends on a day off, workers compensation insurance won’t cover them.
Workers’ compensation insurance is required by law in almost every state. Some worker exemptions exist, so you’ll want to check with your state to find out if coverage is mandatory for your business.Choosing to forgo workers comp coverage puts your business at high financial risk. Not only can you face a lawsuit for workplace injuries, but you’ll likely be fined for breaking the law.Keep in mind, workers comp insurance protects not only your employees, but your small business too. For example, if your insurance is compliant with state law, an employee who receives benefits can’t sue you for their injuries or lost wages.They can, however, sue you for things that aren’t covered under the workers’ comp portion of your policy. Employer’s liability insurance is also included in your policy to pay for court costs and legal fees if you’re involved in such a lawsuit.
The national average monthly cost for workers’ compensation insurance shows the coverage to be very reasonable for small business. However, averages don't always represent your unique business. Your rate will depend on the specific qualities of your business including your state, payroll and claims history.
Discover how these and other factors influence your workers’ compensation cost. You may also start a quote online, or contact us directly to speak with an in-house agent who can help you find coverage.
In addition to injuries that occur outside of work, injuries that occur intentionally, while commuting to and from work, or due to intoxication or substance abuse wouldn’t be covered by workers compensation.
It varies based on where your business operates. For example, certain types of employees, such as seasonal workers, may not be covered by workers compensation in some states. Contact us at 1-800-789-1132 and we’ll help you answer any state-specific questions you have about your coverage.
Not usually. While workers compensation laws vary from state-to-state, most states don’t require sole proprietors to carry workers comp.
Depending on the state, contractors and volunteers can be entitled to workers compensation benefits if they’re injured or become ill on the job. Our in-house agency can help answer any state-specific workers compensation question you have. Give us a call at 1-800-789-1132.
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