What is Workers’ Compensation Insurance?
Workers’ Compensation insurance provides protection for employers if an employee suffers a work-related illness or injury. It is also commonly referred to as Workman’s Comp or Workers Comp insurance.
Businesses are often required by law to have Workers’ Compensation insurance before they hire their first employee.
What does Workers’ Compensation Insurance cover?
Workers’ Compensation insurance provides benefits to your employees when they make a claim against your workplace for injury or illness. These benefits include:
- Medical care
- Missed wages during recovery
- Disability support costs
- Compensation for workplace deaths
Worker’s Compensation insurance provides benefits for a wide range of workplace injuries, such as:
- Injuring themselves by tripping on stairs at your business location
- Developing carpal tunnel syndrome caused by unsafe typing habits
- Getting injured in a car accident while visiting a customer
What is not covered by Workers’ Compensation insurance?
There are limits to what Workers’ Compensation insurance will cover. Workers’ Compensation policies do not cover:
- Injuries caused while intoxicated or on drugs
- Independent contractor injuries
- Injuries claimed after an employee is fired or laid off
- Wages for replacement workers
- OSHA fines
Who is covered by Workers’ Compensation insurance?
Workers’ Compensation insurance covers your employees and provides protection for your small business.
If an employee is injured while on the job or contracts a serious illness while working, your Workers’ Compensation policy will cover the cost of medical care, replacement wages, and disability support costs. Should an employee pass away while performing their job, Workers’ Compensation insurance will help cover funeral costs.
However, employees or their families sometimes sue employers over workplace injuries, illnesses, or deaths. Workers’ Compensation also provides financial protection for your business by covering legal costs if it is sued for damages.
Who needs Workers’ Compensation insurance?
Small businesses of all kinds may need Workers’ Compensation insurance. Without Workers’ Compensation insurance, your business will be responsible for medical bills and legal fees.
While workers’ comp laws vary from state to state, most small businesses are required to have a policy in place when they hire their first employee. This generally includes part-time employees as well as full-time ones.
Most states will fine businesses who do not comply with the state’s Workers’ Compensation requirement.
Workers Compensation insurance for Self-Employed Workers
If you are a sole proprietor (self-employed with no employees), Workers’ Compensation insurance may not be required for your business. However, it could still be beneficial should you become injured or seriously ill as a result of your work activities.
Check your state laws to understand the workers’ comp requirements in your state regarding sole proprietors.
(BizInsure provides Workers Compensation insurance in all states except Alaska, Hawaii, Ohio, Wyoming, Washington and North Dakota.)
How Much Does Workers’ Compensation Insurance Cost?
Insurance companies use many different factors to determine the cost of Workers’ Compensation policies. These include details about your business like:
- Your industry
- Your company’s payroll
- Claims history
- Amount of coverage needed
- Geographic location
Every small business is different with its own unique risk factors. Your policy and premiums are likely to differ from other companies, even within the same industry.
Why is Workers’ Compensation coverage important?
Workers’ Compensation coverage is important, because it helps protect your employees and your business in the event of an on-the-job injury or illness.
These policies generally provide your employees with a safety net of benefits. This may include covering medical expenses caused by a workplace injury, replacing lost wages while they recover, and covering the costs of physical therapy to help them return to work.
Your Workers’ Compensation insurance also provides financial protection for your business should an employee or their family sue for damages resulting from a workplace injury or illness. Court costs, settlements and judgements can easily run into the thousands of dollars. Workers’ Compensation insurance helps cover legal costs that could strain your business’ finances.
In many states Workers’ Compensation insurance is required by law. Keeping an active policy can protect your business from being fined or the subject of further legal action.
How does Workers’ Compensation insurance work?
When an employee suffers a work-related injury or illness, Workers’ Compensation insurance provides financial assistance to help them throughout their recovery.
A Workers’ Compensation policy typically covers medical costs related to the employee’s on-the-job injury or illness, replaces part of their income if they take time off to recover, and pays disability support costs if they are unable to return to work.
Workers’ Compensation insurance also provides protection to you as an employer. If an employee or their family sues your business over a workplace injury, illness or death, you Workers’ Compensation policy will cover the legal costs of the lawsuit and any settlements or judgements you are ordered to pay.
Does Workers’ Compensation help cover fatal accidents?
Most Workers’ Compensation policies include death benefits that cover fatal workplace accidents. These help the employee’s family or loved ones pay for their funeral and burial costs.
Is Workers’ Compensation insurance required by law?
Workers’ comp laws vary by state. You may be legally required to have Workers’ Compensation insurance for your business, and your policy typically must be in place before hiring your first employee. If you are unsure if you need Workers’ Compensation insurance for your business, check your state or local laws.
BizInsure provides Workers Compensation insurance in all states except Alaska, Hawaii, Ohio, Wyoming, Washington and North Dakota.
Why do certain clients require you to carry Workers’ Comp?
Clients often require contractors to hold their own Workers’ Compensation insurance. This helps limit the client’s legal liability if the contractor is injured while working on a project for the client. Contractors with their own Workers’ Comp insurance are more likely to make a claim through their insurance, rather than seeking payment from the client.
What is Employers’ Liability insurance?
Employers’ Liability insurance protects you, the employer, from lawsuits relating to a workplace injury and negligence.
Employers’ Liability insurance is typically included in Workers’ Compensation insurance policies, unless your policy was purchased from a monopolistic state fund. This coverage can be established to compliment your Workers Comp policy.
Why choose BizInsure for your Workers’ Compensation insurance?
Comparing Workers’ Compensation insurance policies can be time consuming, and BizInsure understands that as a small business owner, your time is valuable.
BizInsure makes it quick and easy to compare top rated Workers’ Compensation insurance quotes from leading insurers. Quotes can be purchased online or over the phone, and your insurance certificate will be emailed to you instantly.
Our licensed agents are available, should you need assistance at any point. They are happy to help with getting quotes, purchasing a policy and anything else you may need for the duration of your policy.
How can I get Workers’ Compensation insurance?
BizInsure makes it easy for small business owners to get Workers’ Compensation insurance. Our streamlined online application process is a quick, reliable way to obtain and compare multiple Workers’ Compensation quotes, purchase a policy, and print proof of insurance.
You can also receive quotes and purchase over the phone. Our friendly, licensed support team is available to help you at any stage of your insurance journey.
Please note, BizInsure does not provide Workers Compensation insurance in Alaska, Hawaii, Ohio, Wyoming, Washington or North Dakota.
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