Worker’s Compensation

Workers compensation insurance provides medical expense and lost wage coverage for employees injured on the job, while protecting employers from related legal claims and financial loss. It ensures that injured workers receive timely care without forcing employers into costly lawsuits.

What Is Workers Compensation Insurance?

Workers compensation insurance is a mandatory or strongly recommended policy for businesses that have employees. It helps cover medical bills, rehabilitation costs, and a portion of lost wages when an employee suffers a work-related injury or illness. It also offers employer liability protection for claims arising from these injuries.

Most states require workers comp for businesses once they hire their first employee.

Who Needs Workers Compensation Coverage?

Workers compensation is typically required for:

• Businesses with employees in most states

• Full-time and part-time workers

• Temporary and seasonal workers in many jurisdictions

• Contractors in certain industries depending on state rules

Even if not legally required, many employers choose to carry coverage to protect employees and reduce legal risk.

What Workers Compensation Covers

Medical Expenses
Pays for treatment related to work-related injuries or illnesses, including doctor visits, hospital stays, and therapies.

Lost Wages / Income Benefits
Provides partial wage replacement while an injured employee is unable to work during recovery.

Disability Benefits
Offers benefits for temporary or permanent disability resulting from a work injury.

Rehabilitation and Vocational Services
Covers costs for physical therapy or retraining if needed for the employee’s return to work.

Death Benefits
Pays benefits to the dependents of a worker who dies from a work-related injury or illness.

Why Workers Compensation Matters

Work-related injuries and illnesses can happen even in safe workplaces. Workers compensation matters because:

• It ensures injured employees get medical care and income support

• It reduces employer liability exposure for worker injury lawsuits

• It supports compliance with state labor laws

• It promotes workplace safety and employer accountability

Without workers comp, injured employees may face out-of-pocket costs, and employers may face costly legal battles.

How Workers Compensation Works

When a covered injury occurs:

1. Report the injury promptly — notify your insurer and document the incident

2. File a workers comp claim — based on the injured employee’s details and injury description

3. Insurer reviews and approves — the claim if it meets state and policy criteria

4. Benefits are paid — to cover medical care, lost wages, or disability support

Prompt reporting and documentation are key to a smooth claims experience.

How Much Workers Compensation Insurance Costs

Premiums depend on:

• Type of business and industry risk level

• Total payroll amount

• Claims history and frequency

• Number of employees

• State regulations and rating factors

Higher-risk industries (construction, manufacturing) generally pay more, while office-based businesses may have lower rates.

Frequently Asked Questions

What is workers compensation insurance?
Workers compensation insurance covers medical expenses and lost wages for employees injured at work and protects employers from related liability.

Is workers compensation required?
In most states, yes — employers must carry workers comp once they hire employees.

Does workers comp cover all employees?
It typically covers employees, but independent contractors may not be included unless specified by state rules.

Will workers comp pay for lost wages?
Yes. It provides partial wage replacement while an injured worker recovers.

Does workers comp cover work-related illness?
Yes. It generally covers both injuries and illness caused by job duties or workplace conditions.

Can employees sue their employer after a workers comp claim?
In most cases, workers comp prevents employees from suing employers for injuries covered by the policy.

Final

Workers compensation insurance provides critical protection for both employees and employers. It ensures injured employees receive medical care and income support while protecting businesses from expensive legal claims related to workplace injury. With over 30 years of experience helping employers find tailored coverage, we provide expert guidance to help you secure the right workers compensation policy for your business.

Fill out the form below to get expert help selecting workers compensation insurance that fits your needs and complies with state requirements.
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