It is possible for employees to become injured or ill as a direct result of working. When this happens, the employer may be found liable for the medical bills, lost time at work, and other losses sustained by the employee. Worker’s compensation coverage provides insurance to cover those associated risks. In most cases, businesses are required to obtain and maintain a worker’s compensation policy as a requirement for operating a business, once you have employees in your organization. We regularly help businesses get the appropriate Workers Compensation coverage, for very competitive prices.
Workers’ Compensation Insurance – Frequently Asked Questions
- What is workers’ compensation insurance, and what does it cover?
Workers’ comp provides wage replacement and medical benefits to employees who are injured or become ill due to their job. It also protects employers from lawsuits related to workplace injuries. - Is workers’ comp required by law?
Yes, in most states. Requirements vary, but nearly all states mandate workers’ compensation if you have one or more employees. Some exceptions may apply for family members or independent contractors. - What types of injuries or illnesses are covered?
Workers’ comp covers injuries and occupational illnesses that occur during the course of employment, including slips and falls, repetitive stress injuries, machinery accidents, and exposure-related illnesses. - What benefits does workers’ comp provide to employees?
Typical benefits include:
- Medical treatment for the injury or illness
- Partial wage replacement during time off
- Rehabilitation or retraining services
- Disability benefits (temporary or permanent)
- Death benefits for surviving dependents
- Am I covered as the business owner?
Not automatically. Business owners, officers, and LLC members may be able to opt in for coverage depending on your state’s rules. This is worth considering if you’re involved in day-to-day operations. - Do independent contractors need to be covered?
It depends. If they are truly independent and not under your control, coverage may not be required. However, misclassification can lead to fines, so it’s important to understand your state’s definitions. - What happens if I don’t carry workers’ compensation insurance?
You could face steep penalties, fines, and legal liability. In some states, non-compliance is a criminal offense, and you may be personally responsible for all injury-related costs. - Does workers’ comp cover remote or work-from-home employees?
Yes, if the injury arises out of and in the course of employment. However, proving a claim can be more complex, so it’s important to document duties and expectations clearly. - How are workers’ compensation premiums calculated?
Premiums are based on your total payroll, job classifications (risk levels), and your experience modification rate (EMR), which reflects your business’s claims history. - How can I reduce my workers’ comp costs?
- Focus on safety training and accident prevention
- Maintain a strong return-to-work program
- Keep accurate payroll records and classifications
- Report claims promptly
- Partner with an agent who helps you manage risk and shop carriers
