Workers Compensation Insurance

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What is Workers Compensation Insurance?

Workers compensation insurance protects your employees and your business from work-related accidents, illnesses, and even death. Nearly every state requires that employers have insurance to cover medical costs and lost wages for workers who are injured or become ill on the job. If you don’t carry workers compensation insurance, you could be liable for these costs, and be subject to fines or penalties by the state.

Workplace injuries happen even in the safest of workspaces. Even if your employee has health insurance, you are responsible for their medical costs if they suffer a job-related injury or illness. In addition, the worker is entitled to a percentage of their regular wages during the time that they are unable to work due to their injury or illness. These costs are covered by workers compensation insurance. If you don’t have insurance, you will have to pay these costs out of pocket.

Do I need Workers Compensation Insurance?

Almost every business owner who has W2 employees or in some cases 1099 contractors, will need workers compensation insurance:
  • You are ready to hire your first employee
  • You have one or more full time employees
  • You have one or more part-time employees (in most states)
  • The state you operate in requires that you provide workers compensation insurance

What does Workers Compensation Insurance cover?

The types of claims can vary widely due to its “general” nature, but here are a few examples of how it can protect your business. Please note that each policy is different and some addons may be necessary depending on your business.
Claim Type
Definition
Example
Injury to your employee Workers compensation insurance covers your company’s employees in the event that they get injured while at work and can’t perform their job. While placing a box on a high shelf in the warehouse, an employee inadvertently knocks down another box, which lands on their head. The employee is taken to the hospital and is diagnosed with a concussion. The doctor requires the employee to remain in the hospital for 24 hours and to stay on bed rest for a week. Workers compensation insurance could pay for the cost of the employee’s hospital visit as well as a portion of their wages for the missed week of work.
Injury to a part-time employee or contractor Those you have contracted are also covered in the event that they get injured while at work and can’t perform their job. An electrical subcontractor is working on a rehab of an old building. The electrician accidentally cuts a live wire and is electrocuted. The worker survives, but has a lengthy hospital stay and rehabilitation before they can return to work. Workers compensation insurance covers the worker’s medical costs and a percentage of lost wages.

Injury to your employee

Injury to your employee

What It Covers

Workers compensation insurance covers your company’s employees in the event that they get injured while at work and can’t perform their job.

Why you need it

While placing a box on a high shelf in the warehouse, an employee inadvertently knocks down another box, which lands on their head. The employee is taken to the hospital and is diagnosed with a concussion. The doctor requires the employee to remain in the hospital for 24 hours and to stay on bed rest for a week. Workers compensation insurance could pay for the cost of the employee’s hospital visit as well as a portion of their wages for the missed week of work.

Injury to a part-time employee or contractor

Injury to a part-time employee or contractor

What It Covers

Those you have contracted are also covered in the event that they get injured while at work and can’t perform their job.

Why you need it

An electrical subcontractor is working on a rehab of an old building. The electrician accidentally cuts a live wire and is electrocuted. The worker survives, but has a lengthy hospital stay and rehabilitation before they can return to work. Workers compensation insurance covers the worker’s medical costs and a percentage of lost wages.

How much does Workers Comp Insurance cost?

Underwriters consider a number of factors when calculating workers compensation quotes such as:
  • Location
  • Type of business
  • Number of employees

General Liability Insurance FAQ's?

How long does it take to get a quote?

The underwriting process typically takes about a week. This is often shorter, but can also take longer depending on the complexity of your business and the coverage(s) being requested, but as long as your submission is complete, we should be able to expedite your quotes. Your Account Executive should be able to give you a more accurate estimate upon review of your application.

From submitting the application, it can take between 3-7 days to receive a full proposal depending on which coverages you have applied for.

What information do I need to provide?

The required info can differ slightly depending on the coverages selected on our site, but basic company info, revenue and payroll figures, and relevant financial statements are the most important. Certain coverages will require specific documents, but once you select the coverage(s) you need, the application will prompt you for the required information

What is the difference between an Admitted and Non-Admitted carrier?

An Admitted Carrier is backed by the government. In the event the insurance company fails, the state will step in as necessary to make claim payments. With a non-admitted insurance carrier, there is no such protection.

How long until I get my policy?

Policies often take 30 to 45 days for the carrier to issue and for the state to stamp when necessary. Binders and Certificates of Insurance are issued as proof of coverage in the meantime.

What payment options exist for my Workers Compensation policy?

Cover Small Business partners offers a range of payment options, including debit and credit card (Visa, MasterCard and American Express) payment. You can also choose to pay the full amount in one lump sum each year or pay monthly.

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