Workers' Comp Insurance

Workers' Comp Insurance: Protect Your Employees with Our Customized Coverage

Your business is growing. So how do you know when it’s time to protect it with a workers' comp insurance policy?

Don’t worry. We got you.

If you employ one or more people (even on a part-time basis), Simply Business can help you find an affordable workers' comp insurance policy. Our licensed insurance agents will take the time to understand your business’s specific needs and help you find a policy that works for you…not the other way around.

So if you want to keep your employees protected and meet your state’s workers comp codes, we’re here to help.

Get Your Workers' Comp Quote

What is Workers' Comp Insurance?

If an employee gets sick or injured while working for you, workers compensation — which typically includes employers liability insurance — could financially cover those resulting claims.

For example, say one of your employees falls off a ladder at a jobsite and breaks his arm. He heads to the hospital, where he’s given an arm cast and instructions to take several days off from work.

Or let’s say one of your part-time employees slips on a puddle of water in your office and smacks her head on the tile floor. She’s dazed and needs to go to the emergency room, where she’s checked for a concussion.

Turns out, she has one, and she has to miss two weeks of work as a result.

In both of the above scenarios, your workers' comp insurance policy could kick in and pay your employees’ medical bills (including rehabilitation expenses), since they were injured in the course of working for you.

If those same employees had to miss work to recover, your workers' comp insurance policy could also cover their lost wages.

And should the worst ever happen, your policy could pay out death benefits to your employee’s loved ones.

Carrying a workers' comp insurance policy can provide much-needed security, as having this coverage in place usually prevents an employee from suing your business for workplace injuries.

So in summary, workers comp can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Here's what is not covered by workers' compensation insurance:

• Client or vendor accidents
• OSHA fines
• Work safety improvements
• Wages for a worker who replaces the injured employee

Does a Small Business Need Workers' Comp Insurance?

If you have employees — whether they’re part-time or full-time — there’s a good chance you need workers comp coverage.

And not just because it’s the right thing to do (more on this in a bit). It’s because most states' workers comp codes require business owners with employees to carry some form of workers compensation insurance.

So even if you have someone who helps out your business on the weekends, you may be legally obligated to have workers comp insurance.

Keep in mind, though, that you may be asked to show proof of your subcontractors’ insurance coverage if, for example, you’re applying for a permit or if a customer wants to see a Certificate of Insurance (COI).

Helpful hint: Wondering how much coverage you’ll need? Check out our state-based insurance hub. You’ll find recent WC requirements for your state and any other insurance info you want to know so that you can choose the best workers' comp insurance for a small business like yours.

But a workers' comp insurance policy is about so much more than meeting your state’s requirements. Having the policy also can:

• Protect your business’s finances in the event a claim is filed
• Prevent your business from being wiped out by a catastrophic claim
• Pay for legal fees if you need to defend yourself against a lawsuit
• Build trust with your employees
• Give employees a sense of security that they’ll be taken care of should the worst happen
• And more

What Does Workers' Comp Cover?

1. It can cover the cost of an employee’s medical bills.

If an employee is injured or gets sick on the job, your workers comp policy may help pay for their resulting medical bills.

It’s just a little extra peace of mind for both you and your employee!

2. It also can cover your employee’s lost wages.

Should your employee have to take time off to recover from a work-related injury or sickness, your workers' comp insurance policy could pay out their wages.

While this benefit generally does not have a limit, state-governing bodies may cap the maximum lost wage benefit that an injured employee is able to receive.

3. Workers comp can cover rehabilitation and physical therapy costs.

Sometimes injuries can’t get better on their own without some extra help.

If your employee needs rehabilitation or physical therapy as a result of a work-related injury or illness, your policy may cover those costs.

4. Your workers comp insurance can even cover death benefits should the worst happen.

If an employee dies as a result of a workplace injury or illness, your workers comp policy can cover death benefits including:

• Funeral costs
• Financial assistance for the employee’s spouse and/or beneficiaries
• And more

5. It can cover the cost of legal fees if an employee decides to sue you.

While having a workers comp policy can help ensure that your business isn’t sued for an injury or illness, it still does happen. That’s why most workers' comp insurance policies include employee’s liability insurance.

If an employee claims that your negligence directly resulted in the accident or illness, your employer’s liability coverage may cover costs related to:

• Attorney’s fees
• Claim payouts
• And more

Keep in mind that the above is subject to your employers liability coverage’s limits.

Want more info on what workers compensation can cover? Call 855-930-2844 to talk to one of our U.S.-based insurance agents!

How Does Workers Compensation Insurance Work?

Workers compensation coverage is a policy that’s taken out by the small business owner (that’s you) typically as soon as they hire their first employee.

If an injury, illness, or other serious medical issue happens to an employee as a result of their work for you, that employee files a claim against your workers comp policy — not you.

From there, the insurance company that holds your policy works with the employee to come up with a settlement for their claim.

That means the employee is able to recoup financial losses, and you’re able to continue growing your business without experiencing a potentially catastrophic lawsuit.

Why is Workers Compensation Insurance Important?

1. It helps you meet your state’s requirements.

We mentioned this before, but it’s worth mentioning again: As soon as you hire your first employee, most states will likely require you to have workers comp insurance coverage.

And if you don’t?

Then there’s a good chance you could get hit with a noncompliance fee, which can be very expensive, with many states charging a minimum of $10,000 and/or jail time.

2. You may need it for certain projects.

If you need to pull a permit for a project or take out a trade license, you may be asked for a workers compensation COI if you have employees.

Without proof of coverage, you’ll likely find it impossible to get that permit or license.

3. It protects your business and personal finances.

Without a workers comp policy, your business is potentially left vulnerable to employee lawsuits stemming from their work-related injuries and illnesses.

And even if an employee wasn’t injured on the job, you’d still have to hire a lawyer to prove it — and those attorney’s fees can add up fairly quickly.

Having this type of coverage ensures you don’t have to pay out of pocket for an employee’s claim, allowing you to keep doing what you do best…

Running your business.

Are Companies Required to Have Workers' Compensation Insurance?

If you have employees working for you (even subcontractors), you may be legally required to have workers compensation coverage.

The minimum coverage amount varies on a state-by-state basis, but as soon as you’re ready to start hiring, you should start shopping around for workers comp insurance.

Once you purchase your policy, you should be issued a certificate as proof that your business has coverage.

Who Pays the Workers' Compensation Insurance Premiums?

The owner of the business (that’s you!) pays the policy premiums. If an employee gets injured or sick on the job, that’s when your policy can come into play.

Your insurance provider may pay out any costs and claims associated with the illness or accident, up to your coverage limit or state-mandated benefit cap.

Is Workers Compensation Insurance Cost Based on Payroll?

The number of employees you have in your company can influence how much you pay for workers comp insurance. Think about it this way: The more employees you have, the more coverage you’ll need in the event something happens to them.

When shopping around for a policy, you should expect to provide the number of full-time and part-time employees who work in your business. You also may need to provide the number of subcontractors or consultants who work for you.

Remember, you may not need to cover subcontractors or consultants who work at their own businesses, though.

Is Workers Comp Insurance Tax Deductible?

Your policy premiums most likely are considered tax deductible. The IRS generally considers your policy premiums a business expense, which are tax deductible.

However, you should seek advice from a tax preparer or an accountant if you want to learn more about deducting your insurance premiums on your business’s income taxes.

What Is a Certificate of Workers' Compensation Insurance and Why Do I Need It?

A certificate of insurance (COI) provides proof that your business is protected in the event an employee gets injured or sick as a result of working for you.

Your workers comp policy can help you demonstrate to third parties that you have your legally required coverage.

For example, if a government contract requires you to have WC insurance, showing your certificate could help land you the project.

How Do I Buy Workers' Comp Online?

We thought you’d never ask!

You can get a quote online in just a few minutes. Or give us a call at 855-930-2844. You’ll be connected with a licensed insurance agent who can get you set up with a workers comp policy ASAP.

Once you’re covered, we’ll send out your COI so you can start showing off that proof of coverage.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.