Workers’ Compensation Insurance

What is workers' compensation insurance?

When a work-related injury or illness arises, workers’ compensation insurance protects both employees and employers. One part of the policy provides financial protection to workers and/or their families who are injured, become ill, or are killed as a result of a work-related event. The other part protects the employer because employees cannot bring lawsuits against their employer for medical expenses if a workers’ compensation policy is in force.

Who needs workers' compensation insurance?

Workers’ compensation insurance is required by law in almost every state. These laws are designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, received by employees in the course of their work. Workers’ compensation insurance can also protect your business from being sued by employees for workplace conditions that can cause an injury or illness.

This type of insurance is beneficial if…

• You have employees
• There are occupational hazards or illnesses associated with your industry
• Your business is located in a state that makes it mandatory

What does workers' compensation insurance cost?

In almost every state, workers’ compensation rates are regulated by the state. The primary factors that will affect your workers’ compensation costs are:

• The state you work in
• The industry your business participates in
• The annual payroll of your business
• The claims history of your business