Protect your business from costly lawsuits while assuring employees that they are covered.
Often called “Workman’s Comp” or “Workers Comp”, this insurance has been available in the U.S. since 1949 and provides wage replacement and medical benefits to employees who are injured at work. In exchange, employees relinquish their right to sue their employer for negligence.
Workers Compensation Insurance is mandatory in most U.S. states, and laws requiring that businesses hold these policies are intended to eliminate the need for litigation. Employees who are injured or become disabled at work will not need to cover payment of their own medical bills and will receive monetary compensation to cover the loss of wages. This compensation might cover a portion of wages while they are out recovering from an injury, or it might last longer in situations where employees have suffered permanent physical damage.
- Employees’ medical expenses for illness and injury suffered due to on the job accidents
- Occupational illnesses
- Repetitive stress injuries
- Workplace violence
- Stress-related mental injuries, like PTSD
- Death benefits paid to employee’s dependents
- Rehabilitation services and retraining programs
While it generally covers any injuries or illnesses that develop on the job, there are some exceptions. Workers may not be covered in these cases in some or all states:
- Self-inflicted injuries
- Injuries incurred while not on the job
- Injuries incurred as a result of conduct or actions that violate company policy
- Injuries that happen while an employee is committing a crime.
You’ll need workers compensation insurance if your business meets any of the following criteria:
- You have employees
- Your industry has associated occupational hazards or illnesses
- Your business is located in a state that makes it mandatory
Just like most insurance policies, the cost will vary based on the nature of your business, its size, its risk factors, and its location.
Typically, a small business owner with a few employees can expect to pay around $2,000 to $3,000 in Workers Compensation Insurance premiums annually. As an employer’s payroll increases, premiums will also increase.