Workers’ Compensation Insurance
Workers’ Compensation Insurance is an essential protection for businesses and employees in any industry. In fact, this coverage is so important that it is required by law in almost every state, dating back to policies adopted in the early 1900s.
Accidents happen all the time. Workers’ Compensation, also known as Workers’ Comp and Workman’s Compensation, helps provide benefits for employees who become ill or injured at work. For employers, this coverage also offers protection from being sued by an employee for a work-related injury or lost wages. And of course, carrying state-mandated insurance coverage also helps business owners avoid costly fines and penalties.
At Webb Insurance in St. Charles, our independent insurance brokers will identify the Workers’ Compensation plan that provides the best protection for your business and fulfills state law requirements. Find the answers to all your questions about mandatory Workers’ Compensation insurance below.
What is Workers’ Compensation Insurance?
A typical policy will help an employee recover a portion of their lost wages while they are healing from a work-related illness or injury. This insurance also covers:
- Medical expenses, including rehabilitation;
- Death benefits such as funeral expenses; and,
- Legal fees for the employer, if they are named in a lawsuit.
Work-related injuries refer to an incident resulting from a person’s job duties or employment. For example, a construction worker could be injured by stepping on a nail, falling and breaking a bone or getting a serious laceration at their worksite. Work-related illnesses are also covered by Workers’ Comp and could include an administrative assistant suffering from Carpal tunnel syndrome due to repetitive motion and poor posture.
It does not provide coverage for an employee’s illness or injury when it is the result of actions taken outside of their scope of employment. A group of employees could be arm-wrestling during their lunch break, for instance, resulting in one employee tearing a muscle. This type of injury typically would not be covered by Workers’ Comp.
Employers and small business owners generally receive protection from being sued by an employee as a condition of the employee receiving Workers’ Compensation payment. Employers also benefit from rehabilitation services to help injured employees come back to work sooner and avoid being fined for failure to comply with state law.
Workers’ Comp Insurance FAQs
Do I need Worker’s Comp?
This coverage is required for employers in almost every state. And in the state of California, for example, the penalty for going without mandatory Workers’ Compensation insurance can be up to $100,000.
In some states, organizations of any size — even the business owner and one employee — are required to carry Workers’ Comp. And while the likelihood of a serious accident or injury may seem small, one incident could result in thousands of dollars of medical bills, lawsuits and fines that might send your business into bankruptcy. That’s not a risk worth taking.
Talk to your insurance broker about requirements in your state to ensure your business is protected from employee injuries and in full compliance with the law.
What if my business uses independent contractors, subcontractors or volunteers?
It is common for employers in construction, landscaping, event planning and other industries to rely on independent contractors and subcontractors, instead of a traditional salaried employee. And in some states, nontraditional employees are also entitled to Workers’ Comp benefits.
Speak with an insurance broker about your business practices to determine whether or not you may be required to carry Workman’s Comp for your contractors or volunteers.
What is not covered by Workers’ Compensation Insurance?
A typical Workman’s Compensation Insurance policy typically does not cover the below scenarios:
- Any illness or injury resulting from intoxication or illegal drug use, or other conduct that violates company policy
- Injuries that do not occur on the job, or within the scope of a person’s employment
- Intentional harm, such as assault or defamation
Any damages to a third-party non-employee of your business, such as a client or a guest visiting the office, would correspond to a General Liability Insurance policy.
How much does Workers’ Comp cost?
Several factors will influence the amount you pay, including state requirements, the size of your payroll, the type of work you are doing and any claim history. You may also be eligible for a bundle discount if you purchase multiple business insurance policies through the same insurer.
Start by getting a free, no obligation quote for Workers’ Compensation Insurance on our website.
How to Buy Workers’ Compensation Insurance
The American worker is the backbone of our economy. That’s why Workers’ Comp protection has been mandatory in most states for over 100 years. Protect your business and your hard-working employees with Webb Insurance in St. Charles. No matter where your business is located in the United States, we can provide coverage that is tailored to your unique needs and fully compliant with state law.
Need protection for your employees? Get a free Workers’ Compensation Insurance quote with no obligation to purchase.