Workers Compensation Insurance
Essential Coverage For Work-Related Accidents And Injuries
Protect Your Employees and Your Business
When an employee is injured on the job, workers’ compensation insurance covers their medical care and a portion of lost wages — while also protecting your business from a potential lawsuit over the injury. In most states, it’s required as soon as you have employees.
As independent insurance agents, we help business owners understand their state’s requirements and find coverage that fits their industry and payroll.
Factors That Affect Your Workers’ Compensation Cost
- Total payroll
- Industry and job classification codes
- Number of employees
- Claims history and experience modification rate (EMR)
- State where employees work
- Safety programs and workplace policies in place
In most states it is required by law for a business with employees to carry Workers’ Compensation Insurance. A Workers’ Compensation policy covers medical expenses and lost wages resulting from a job-related injury or illness. It not only protects your business also takes care of your employees should a job related accident ever occur.
Because every business’s payroll and risk classification is different, the best way to know your actual cost is to get a personalized quote.
Frequently Asked Questions
What Is Workers' Compensation Insurance?
Workers’ compensation insurance provides medical benefits and partial wage replacement to employees who are injured or become ill because of their job, regardless of who was at fault. In exchange, it generally protects employers from being sued directly by an injured employee for those workplace injuries.
Why Do You Need Workers' Comp?
Workers’ compensation is legally required in most states once a business has one or more employees, with specific thresholds varying by state. Beyond the legal requirement, it protects your business from the potentially significant cost of an employee injury, covers medical bills and lost wages so employees aren’t left without support, and is often required to bid on contracts or maintain certain business licenses.
What Does a Typical Workers' Comp Policy Cover?
Coverage Type | What It Protects |
|---|---|
Medical Expenses | Treatment costs for a work-related injury or illness. |
Lost Wages / Disability Benefits | Partial wage replacement while an employee recovers. |
Rehabilitation | Physical therapy or vocational rehabilitation to help an employee return to work. |
Death Benefits | Benefits paid to dependents if a work-related injury results in death. |
Employer’s Liability | Protection for the employer against related lawsuits not covered by the no-fault benefit structure. |
What’s Usually NOT Covered?
- Injuries from intoxication or horseplay – injuries resulting from being under the influence or from workplace misconduct are typically excluded.
- Self-inflicted injuries – intentional self-harm is not covered.
- Injuries outside the scope of employment – an injury unrelated to job duties generally isn’t covered.
- Independent contractors – properly classified independent contractors are generally not covered under your workers’ comp policy.
- Ordinary commuting injuries – injuries during a normal commute to and from work are typically excluded, with some exceptions.
Is workers' comp required in every state?
Nearly every state requires workers’ compensation coverage once you have employees, though the specific employee-count threshold, exceptions, and rules vary by state – some states also allow certain small businesses to opt out under specific conditions.
Do I need workers' comp if I only have one employee?
In many states, yes – some states require coverage starting with your very first employee, while others have a higher threshold. Requirements vary, so it’s worth confirming your specific state’s rule.
What is an experience modification rate (EMR) and how does it affect my premium?
Your EMR compares your business’s claims history to similar businesses in your industry. An EMR below 1.0 generally reflects better-than-average claims history and can lower your premium; an EMR above 1.0 can increase it.
Are independent contractors covered under workers' comp?
Generally, properly classified independent contractors are not covered under your policy. Misclassifying employees as contractors to avoid coverage can create significant legal and financial risk.
What happens if I don't carry workers' comp and I'm required to?
Penalties vary by state but can include significant fines, stop-work orders, personal liability for injury costs, and in some cases criminal penalties for employers who are required to carry coverage and don’t.
Does workers' comp cover remote employees?
Generally yes, if the injury arises out of and in the course of employment, even if that happens at a home office — though specifics can vary and are worth discussing with your agent.