Workers Compensation Insurance

Accidents Happen. Keep Your Employees Protected.

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Tailored Workers Compensation Insurance for Your Business

Your business is growing. Make sure it’s protected with workers compensation insurance.

If you employ one or more people (even on a part-time basis), you’ll need workers compensation coverage. Most states require business owners to carry a workers compensation insurance policy, so if you want to stay on the right side of the law, you’ll need this insurance.

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Workers Compensation Insurance FAQs

Got questions about workers compensation insurance? Don’t worry - we’ve answered your biggest questions here:

What is Workers Compensation Insurance?

When accidents happen, workers compensation insurance can keep your business protected.

Workers compensation insurance covers the costs of lost wages, medical bills, and lawsuits associated with employee injuries and work-related illnesses. If your employee gets hurt or sick on the job, your workers compensation policy can pay for those expenses.

Otherwise, you’ll end up paying for those costs out of your own pocket.

Workers compensation is required by law, so as soon as you start hiring employees (even subcontractors), you’ll need an insurance policy.

What Does Workers Compensation Insurance Cover?

Typically, workers compensation insurance covers:

  • Medical costs for employee injuries and illnesses
  • Lost wages
  • Long-term care
  • Death benefits (including funeral costs)

In some states, workers compensation insurance can be used to coverage legal costs and claims if an employee decides to sue you over a work-related injury or accident.

Workers compensation insurance does not cover:

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

Who Needs Workers Compensation Insurance?

Whether you hire a full-time employee, a part-time employee, or a subcontractor, you’re legally required to carry workers compensation insurance. Keep in mind that your state may determine how much coverage you’re required to carry.

If you work with subcontractors, keep in mind that you don’t need coverage for them if they’re an independent company or entity.

How Much Workers Compensation Insurance Do I Need?

Each state is different in terms of how what your compensation insurance limits should be. This means that your state may have a minimum level of coverage that you should have with your workers compensation policy.

How Much Does Workers Compensation Insurance Cost?

The cost of workers compensation insurance will depend on a number of factors, including:

  • How many employees you have
  • The laws of the state where your business is located
  • The services your business offers
  • The risks you’re exposed to
  • The type of industry you work in

As a general rule of thumb, the more employees you have, the higher the cost of workers compensation insurance.

Who Pays for Workers Compensation Insurance?

The owner of the business (that’s you!) pays for the policy premiums. If an employee gets injured, hurt, or sick on the job, that’s where your workers compensation insurance comes into play. Your insurance provider will pay out any costs and claims associated with the illness or accident, up to your coverage limit.

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

A certificate of insurance (COI) provides proof that your business is protected in case your employees get injured or sick while on the job. Your workers compensation insurance can help you demonstrate to third-parties that you have your legally required coverage. For example, if a government contract requires you to have workers compensation insurance, showing your certificate could help land you the project.

You’ll be issued a workers compensation certificate once you purchase your insurance policy.

Is Workers Compensation Insurance Required By Law?

If you’re working with employees (even subcontractors), you’re 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 get workers comp

Is Workers Compensation Insurance Based on Payroll?

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

When getting your workers compensation insurance quote, you should expect to be asked for the number of full-time and part-time employees in your business. You’ll also need to provide the number of subcontractors or consultants you work with. Remember, you don’t need to cover subcontractors or consultants who work at their own businesses.

Is Workers Compensation Insurance Tax Deductible?

Your workers compensation insurance premiums are considered tax deductible. That’s because the IRS considers your policy premium to be a business expense, which is tax deductible.

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