Workers Compensation Insurance

Protect Your Most Important Assets

Find the best Workers Insurance

Get a Quote Now

What Is Workers Compensation Insurance?

Workers compensation insurance is, at its core, a no-fault insurance policy that provides benefits to employees who are injured or become ill due to work-related causes. Workers’ comp offers protection for employee injuries and illnesses by providing medical coverage as well as payment of certain related expenses. Depending on your state’s laws, workers compensation also covers lost wages while an employee recovers from his or her injury.

Types Of Workers Compensation

There are three basic types of workers compensation coverage: non-occupational, occupational and supplemental

  • Non-occupational is required if you have employees; occupational is recommended if your business doesn’t have any employees but has operations that pose a potential risk.
  • Supplemental is a good choice for businesses that aren’t required to have workers comp insurance
  • Supplemental policies cover loss-of-income benefits, medical and rehabilitation costs, as well as funeral expenses in case of death or dismemberment caused by workplace incidents. Typically, private group plans will provide more affordable rates than individual policies.

How Do Buy Workers Compensation Insurance?

If you’re an employer, your state may require you to carry workers’ compensation insurance for your employees. If it does, that means that for every employee in your business, you must have a policy in place.

Fortunately, if your state does require it, and if you have more than one employee at a time (though sometimes having more is too few), then there are some ways to get cheap workers’ comp insurance.The best way to find out how much coverage costs is to talk with a small business insurance agent. Our agents work with businesses of all sizes across a range of industries to find affordable solutions for small businesses.

Things Covered in Workers Compensation Insurance

These vary from country to country, but in most cases, workers compensation insurance covers medical costs of employees injured on the job as well as income replacement benefits to those who are unable to work due to a workplace injury.Employers also pay into an additional fund that reimburses businesses for damages and injuries if a case goes to court. These additional funds often reduce premiums because they reduce risk associated with insuring work injuries.

How much does it cost?

Workers compensation insurance is mandated by law, but it’s still a significant expense. A typical policy will cover an employee’s medical expenses and lost wages after a work-related injury or illness.You can purchase workers compensation insurance from an independent insurance agency or through your state government. Most employers choose to self-insure—that is, they use their own money to pay claims rather than paying a premium to an outside insurer—but in most states, doing so is illegal.

Limitations Of Workers Compensation Insurance

Not every employee is covered by workers compensation. Most small business owners have employees, but not all are subject to workers compensation insurance laws. Also, coverage may be limited for certain employees depending on their job description.

For example, an entrepreneur who works as a housekeeper at his own home doesn’t need workers compensation insurance because he’s considered an independent contractor instead of an employee. On top of that, employers don’t need to purchase workers compensation if they pay their staff less than $500 per month and have one or fewer full-time employees in a given year.

Conclusion

It’s a fact that many businesses rely on their employees to carry out day-to-day operations, meaning those workers are legally responsible for maintaining workplace safety. With so much on your plate as an employer, it can be easy to forget that employers must have workers compensation insurance.