Workers’ compensation insurance protects businesses and their employees from the cost of workplace injuries. You may also hear it called “work comp” or “workmans’ comp.”
Workers’ comp covers medical bills and lost wages when someone is injured at work. Benefits can also include payments to compensate for permanent disabilities and to dependents of workers who are killed in job-related incidents. A workers’ comp policy also covers the employer in case an injured employee brings a lawsuit for alleged negligence. In this way, insurance provides protection for both the employee and employer.
Workers’ comp policies are issued annually, with a required review or “audit” at the end of each year. The premium is calculated based on the kind of work your employees do and the amount you pay them to do it. Other factors affecting price include your business’ commitment to safety and history of claim activity. Basically, the safer you keep your workers, the less it costs you to insure them.
Unlike other lines of insurance, workers’ compensation doesn’t offer different or optional levels of coverage for you to choose. When your policy is in place, it covers every work-related injury considered compensable by state law. Workers’ comp benefits are determined by state law and don’t vary from policy to policy within the state. They are designed to replace wages lost when an employee is unable to work due to a work injury and cover medical bills related to on-the-job injuries. Benefits can also include payments to compensate for permanent disabilities and to dependents of workers who are killed in job-related incidents.
Any business that employs full-time, part-time or temporary workers is required by law to carry workers’ comp coverage in most U.S. states, but requirements vary by state. Even businesses that do not currently have employees can have a small policy in place to cover individuals who may perform work for them in the future. If you have employees, workers’ comp insurance is part of your responsibility in keeping them safe. Generally, all employees are covered under a workers’ comp policy. In certain instances which vary by state, owners or officers of companies may choose to include or not include themselves under the policy.
Your workers’ compensation premium is based on the type of work your business does, how dangerous your industry is, and the amount you pay your employees. Other factors affecting price include your business’ commitment to safety and history of work injuries. Basically, the safer you keep your workers, the less it costs you to insure them. Workers’ comp policies are issued annually, with a required review or “audit” at the end of each year.
Sometimes accidental injuries are out of your control, but you’d be surprised how much control you do have. For example, slips and falls are very common causes of serious work injuries. Simply ensuring that your parking lot is shoveled and salted in the winter, and keeping your indoor work environment tidy could prevent one of these accidents. Learn more about keeping workers’ compensation costs low.
We insure employers in Minnesota, Wisconsin, Iowa, Nebraska, South Dakota, Kansas, Indiana and Tennessee. We also cover out-of-state operations these employers have in 26 other states including: Alabama, Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, Nevada, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Texas, Utah, Vermont and Virginia. Learn more about our states of coverage.
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