Workers Compensation Insurance
Protect your employees from accidents at work
Covers employees for accidents at work
Workers' Compensation Insurance is a type of insurance that provides coverage for employees who suffer work-related injuries or illnesses. This insurance is designed to protect both employers and employees by offering financial assistance and benefits in the event of workplace accidents. Workers' Compensation Insurance typically covers medical expenses, rehabilitation costs, and a portion of lost wages for employees who are injured or become ill while performing job-related duties.
Key features of Workers Compensaion Insurance include:
- Medical Benefits
- Disability Benefits
- Rehabilitation
- Death Benefits
- Legal Protection
Protect your business against unexpected losses
It's important to note that workers' compensation laws and requirements vary by jurisdiction. In many places, employers are legally obligated to carry Workers' Compensation Insurance, while in others, it may be optional or required only for businesses of a certain size. The specific benefits and coverage details also depend on the laws and regulations of the particular jurisdiction.
Workers' Compensation Insurance helps create a safety net for employees, ensuring they receive necessary support and benefits in the event of work-related injuries or illnesses, while also providing legal protection for employers.
Frequently Asked Questions
Is workers’ compensation insurance required by law?
Every state establishes its unique regulations for workers’ compensation. In the majority of states, it becomes a requirement as soon as you hire your initial employee. Notably, Texas and South Dakota stand as the sole states where employers have the option to decide whether to purchase workers’ compensation.
Apart from the variations among states, the construction industry frequently operates under distinct regulations compared to other sectors. Explore our page on workers’ compensation state laws to gain insights into the specific requirements applicable in your state.
What does workers compensation cover?
Workers’ compensation insurance assists in covering medical costs and partial lost wages incurred due to a work-related injury or illness. In the unfortunate event of a fatality, it also provides death benefits.
What is employer’s liability insurance?
The workers’ compensation employer’s liability segment safeguards the employer from legal actions associated with an injury, addressing claims asserting that the employer’s negligence led to the injury.
Your workers’ compensation insurance inherently incorporates employer’s liability insurance, unless your business operates in one of the four monopolistic workers’ comp states, necessitating coverage through a state fund. In such cases, you have the option to augment coverage by adding stop gap coverage as an endorsement from a private insurer.
Do sole proprietors and independent contractors need workers’ compensation insurance?
Workers’ compensation insurance is typically not obligatory for sole proprietors and independent contractors, unless they are engaged in high-risk occupations like roofing. Nevertheless, there are instances where self-employed individuals with no employees or independent contractors may find it beneficial to acquire a policy.
The rationale for obtaining this coverage lies in the fact that if you sustain an injury on the job, your health insurance provider may reject the claim, making it prudent to safeguard against unforeseen medical expenses. Additionally, clients might stipulate that you carry workers’ compensation coverage.
Given that many sole proprietors and independent contractors are exempt from workers’ comp requirements in various states, a workers’ comp ghost policy can serve as a viable alternative. This type of policy allows self-employed individuals to furnish a Certificate of Insurance (COI) without incurring the cost of a complete workers’ compensation policy.
Is workers' compensation mandatory for limited liability companies?
If your limited liability company (LLC) employs individuals, it is necessary to have a workers’ compensation insurance policy. In the absence of employees in your LLC, the requirement for workers’ compensation hinges on factors such as the number of executive officers or members and other pertinent aspects of your business.
Why is worker classification significant?
The expense of workers’ compensation is, to some extent, influenced by the nature of the work performed by your employees. It is imperative to ensure accurate employee classification to steer clear of legal actions and penalties. Each employee should be allocated a workers’ compensation class code that precisely characterizes their work setting and the associated level of risk.
