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Workers compensation insurance
Support employees who get injured or ill on the job with a workers compensation policy from a trusted insurance company.
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What is workers compensation insurance?
Workers compensation insurance, also known as workers comp, covers lost income and the cost of medical care when employees become injured or ill as a direct result of their jobs. For employers, it provides protection from civil litigation and helps return employees to work in a safe and timely manner.
What's covered under a workers compensation policy
When an employee sustains a work-related injury or illness, workers compensation insurance pays for:
- Medical care needed to treat the injury or illness
- Cash benefits to help offset lost wages
- Disability benefits if the employee becomes disabled
- Funeral costs if the injury or illness results in death
Who needs workers compensation insurance?
Most states require that small businesses with employees carry workers compensation insurance.
Penalties for not having mandatory coverage vary by state, ranging from hefty fines to felony charges and imprisonment.
That's in addition to any employee lawsuit you could face should someone get injured while working.
Consult an independent agent or your state's labor department to find out more about the workers compensation laws and procedures in your state.
Why choose Liberty Mutual for workers compensation coverage?
Why work with independent insurance agents
How does workers compensation insurance work?
- An employee becomes injured or ill on the job, seeks medical attention, and reports it to the employer. Employees who delay reporting a claim may lose their right to workers compensation benefits.
- The employee fills out a workers compensation claim form and provides any required documentation.
- The employer submits the workers compensation claim form and documentation to the insurance provider, as well as any other parties required by law, such as the state's workers compensation agency or board.
- The insurance company reviews the claim form and documentation and then approves or denies the claim. If the insurance company approves the claim, the employee can either accept the payment offer or negotiate for a different settlement. Employees also have the option to appeal denied claims.
Most states require businesses with employees to have workers compensation coverage, and employees are not required to pay for it. While workers compensation ensures employees receive the support they need, as a no-fault coverage, it also protects owners from liability claims that could put their businesses at risk.
Workers compensation frequently asked questions
What a small business pays for a workers compensation policy varies by industry and generally depends on factors like
- The number of employees the business has and their work responsibilities
- The location of the business
- The number of years the business has been operating
- The claims history of the business
A workers compensation policy only covers injuries or illnesses sustained as a direct result of one's job. An insurance company may also deny a claim for an employee who sustained an injury
- When commuting to or from work
- By intentionally harming themselves
- While under the influence of an intoxicating substance
- While engaged in horseplay in the workplace
- While involved in illegal activities at work
We recommend working with an independent agent to learn more about the workers compensation requirements in your state and to find the right solution for your business.
Employers pay for the full cost of workers compensation - unlike other insurance benefits like health insurance, which employees may partially fund through payroll deductions.
If you have no employees, you are not legally required to buy workers compensation insurance.
However, keep in mind that your personal health insurance may not cover you for injuries sustained while you're working. It also won't replace any lost income should an injury or illness force you to take time off and suspend business operations.
Even if you're not legally required to have coverage, it's worth giving careful thought to the risk of operating your business without workers compensation insurance.
A workers compensation premium audit is an annual review of your business that focuses primarily on payroll, which largely determines how much you pay for the coverage.
The purpose of the audit is to verify that the workers compensation premium you're paying aligns with your employee job roles and pay. In some cases, a premium audit can result in a lower premium.
Protect what you've worked
hard to build
hard to build
Take the first step by getting a quote now or finding an independent
agent who can help you choose the right coverage options.