What is Workers' Compensation Insurance?
Workers' compensation insurance, also known as workers’ comp or workman’s comp, is a form of insurance that provides coverage for the costs associated with workplace accidents.
Workplace accidents are an unfortunate everyday possibility, but workers’ compensation can provide a safety net for business owners and employees after an incident occurs. Workers’ compensation coverage was designed to ensure that employees are taken care of if they become injured or ill at work, while also helping to protect employers from financial and legal expenses related to a work injury.
With workers’ compensation coverage, employees relinquish their right to sue a business if they get hurt on the job or for lost wages unless the business is negligent or somehow intentionally contributed to the injury or illness.
The coverage consists of two parts to help you breathe easier:
Workers’ Compensation Insurance
Agrees to pay the benefits required under the applicable workers’ compensation law, including medical costs and lost wages (up to statutory limits).
Employers’ Liability Insurance
Provides coverage for your legal liability to employees not covered by workers’ compensation law.
Help Protect Your Greatest Assets
When a worker is injured on the job, workers’ compensation coverage protects your business operations and perhaps more importantly, helps to facilitate the injured worker's recovery and return to work. We take care of the heavy lifting so you don't have to.
Who Needs Workers' Compensation Insurance?
If you own or operate a business you should consider obtaining a workers' compensation insurance policy, if:
- You are considering hiring your first employee or expanding your team
- The state your business or employees are in requires the business to obtain workers' compensation insurance
- Your business has one or more employees
Why is Workers' Compensation Coverage Important?
Unexpected accidents can happen at the workplace resulting in injuries or illnesses. Should an employee become sick or injured while on the job workers’ compensation may help to protect the employee and the business. Without workers’ compensation, both the business and employees could be in a difficult situation.
There are several other reasons why workers’ compensation coverage is important for a business, including:
Hiring and Retaining Employees
If you want to hire new employees, workers’ compensation coverage may help recruit new employees. If you currently have employees, it could indicate that your business values them. Being able to take care of your employees could help to attract and retain talent.
Workers’ compensation coverage could protect your business against several liabilities. If an employee gets a serious injury that prevents them from no longer working, workers' compensation could cover medical bills and lost wages to the employee. If you have legal expenses associated with an employee injured on the job, it could also be covered by workers’ comp.
Without workers’ compensation coverage, your business may have to pay for employee injuries and lost wages out of pocket. Most businesses do not have the financial liquidity to cover serious incidents and extended periods of lost time. A serious workplace injury could financially devastate your business and could lead to bankruptcy.
If you are just starting out or do not have the capital to cover a heavy workers’ compensation claim, you may want to consider purchasing workers’ compensation coverage. Without a policy in place, injured employees may be able to sue you for things like lost wages, pain and suffering, and exorbitant medical bills.
Why Choose PolicySweet for Workers’ Compensation?
There are several advantages for choosing workers’ compensation coverage from PolicySweet, including:
Does your business need special coverage? Talk to us and find out about how we can help you.
You do not have to wait days to get an insurance quote for your business. With PolicySweet, your business can be insured as soon as tomorrow!
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Our live agents are available to answer all your workers’ compensation questions. Get in touch with us now.
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How Much Does Workers' Compensation Insurance Cost?
Every business is unique and there are several factors that can influence the price of your coverage, such as:
Previous Claims and Workplace Accident History
Having a history of workers’ compensation claims and workplace injuries can affect the price of a workers’ compensation policy. Businesses that do not have a history of many claims may be rewarded with lower premiums and businesses that have had several claims may be penalized with higher premiums.
Class Codes and The Location of Your Business
The state in which your business is located can impact the cost of your coverage. Most states have different class codes for businesses. Similar businesses in each state are grouped into “classes” and usually have comparable workplace injury patterns. The rate of each class is typically based on the previous of loss costs for all businesses within that class. The rate of a class can also be influenced by other economic data and factors within a given state.
Since each state has different workers’ compensation laws the cost of coverage can vary from state to state. If you have employees in multiple states, you should follow the requirements of each state.
- The total payroll of each employee
- The number of employees at your business
- The tasks employees handle at your business
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