Worker comp insurance covers any injuries, death, or work-related sickness of your employees. As an employer, you are liable for anything that happens at your workplace, even if the employee is at fault. Instead of a huge liability cost, you pay a premium and compensation insurance will cover the employee’s medical expenses, plus a percentage of the employee’s wages for the period they are unable to work due to injury. Insurance workers comp also covers a percentage of a deceased employee’s wages to their family.
Most states do require compensation insurance. However, if you’re a small business with less than five employees, you may have the option to self-insure, meaning that you cover the costs from injuries yourself.
If you are a new business owner, it’s important to know workers comp ins laws for your individual state as the law can vary greatly between states.
Compensation insurance varies according to the industry you work in and the state where you conduct business. Each state determines and approves the base rate of workers insurance, which is typically based on the frequency of on-the-job injuries and the severity of injuries. Insurers then look at a number of factors including risk classification and can adjust the rate according to an employer’s claim history.
Each of our agents is committed to making sure that your business has the right amount of workers comp coverage. Your employees work hard for you and they deserve to be covered in case something unexpected happens.