What is workers' compensation Insurance?
Workers' compensation insurance, also called workers' comp, is a type of business coverage that protects both workers and employers. If an employee gets injured or sick at work, this coverage can pay for things like medical bills, lost wages, and physical therapy. It also helps protect employers from legal claims related to workplace injuries.
Workers' compensation insurance explained
The purpose of workers' compensation insurance is to make workplaces safe and productive. To accomplish that goal, workers' comp makes payments to injured employees so they can get medical care and focus on their recovery. Most of the time, workers who accept these benefits have to agree not to sue their employer for the injury. This condition helps cut down on lawsuits and protects the company's reputation.
Progressive Commercial has workers' compensation plans for businesses of all sizes and industries. Start a quote or contact us to learn how we can help keep your team safe.
Do I need workers' compensation insurance?
In most cases, yes. Almost all businesses need to carry workers' compensation insurance by law. However, state requirements for workers' comp vary, so some businesses may be exempt due to factors like their number of employees or payroll size.
Even 1099 employees and self-employed and contract workers may need workers' compensation insurance in certain industries or circumstances.
If you aren't sure whether your business needs workers' comp coverage, our team can help. Call and speak to a Progressive Commercial insurance expert.
Monopolistic states and workers' comp
There are four monopolistic states — North Dakota, Ohio, Wyoming, and Washington — where workers' compensation isn't sold through private insurers. Instead, employers get coverage through a public fund. Apart from being government-run, the system in monopolistic states is similar to what private insurance offers with the same worker protections and support.
However, some employers liability insurance benefits aren't available through the public fund in monopolistic states. To stay protected, businesses can purchase stop gap coverage, which helps with legal costs if an employee decides to sue over an occupational injury or illness.
How much workers' comp coverage do I need?
The amount of coverage you need depends on state laws, the size of your company, and other factors. When you buy workers' comp, you'll share information about your business, industry, and payroll to determine the right level of protection.
Once your policy is in place, your insurance company or state fund will typically perform a yearly workers' comp audit. This review confirms that details like your payroll records are up to date. Based on the results, your coverage amount and premium may change. For example, if your company has grown over the last year, you'll need coverage for more employees.
How does workers' comp insurance work?
If an employee gets hurt at work or sick because of their job, they should tell you right away and see a doctor. Next, someone — like you, your employee, or their doctor — will submit a First Report of Injury (FROI) form to your insurance company. The rules for who can send it depend on your state.
If the claim is approved, workers' comp insurance helps pay the employee's recovery costs until they can return to work. In some cases, it may also help with long-term disability or job training if they can't go back their old role.
What does workers' comp cover?
Workers' compensation insurance benefits cover a wide range of expenses related to workplace injuries and occupational illnesses, including:
- Medical bills and hospital visits
- Physical therapy and rehabilitation
- Lost wages during recovery
Employees who accept workers' comp benefits usually can't sue, but sometimes a lawsuit happens. In those cases, employers liability coverage on a workers' compensation policy can help cover legal costs tied to a work injury or illness.
For example, if an employee gets hurt by a machine, they might sue the company that made it. The manufacturer might then sue you, saying you didn't follow their safety guidelines. In that case, employers liability coverage would help protect your business.
Learn more about how employers liability and workers' comp coverages work together.
How do I get workers' compensation insurance?
In most states, workers' compensation is available through private insurance companies like Progressive Commercial. You can get other coverages you need, too, like a business owners policy (BOP) or general liability insurance.
In monopolistic states, companies need to get workers' comp through the state fund. Employers may also consider buying stop gap insurance from private companies to protect against lawsuits and legal costs.
Frequently asked questions about workers' comp insurance
Is workman's comp insurance the same as workers' compensation?
Yes. Workman's compensation is an older term for the same programs and coverage that we now call workers' compensation. They are interchangeable and both refer to the same type of insurance.
Does workers' comp cover lost wages?
Yes. Workers' compensation usually covers a portion of lost wages while an employee recovers from an injury or illness. How much an employee receives may vary between states. Eligibility can also depend on industry and job function.
Check the laws where you live or speak to a Progressive Commercial insurance expert to learn more about workers' compensation for lost wages.
Does workers' comp cover medical bills?
Yes. Medical bills are one of the main expenses that workers' compensation covers. Most workers' comp policies cover 100% of treatment costs, up to the coverage maximum. Some policies may also help pay for rehab and transportation to and from doctor appointments.
What does workers' compensation not cover?
Workers' compensation insurance won't cover injuries that are unrelated to an employee's job. It also doesn't cover injuries that result from reckless or illegal behavior like drug use, fighting, or intentionally hurting yourself.
How much does workers' comp cost?
It depends. The cost of workers' compensation insurance varies according to factors like your state, company size, industry, and payroll. Start an online quote or speak with the experts at Progressive Commercial to learn about the cost of workers' comp.
Why choose Progressive Commercial for workers' comp
We've been protecting small businesses for over 50 years. Today, we're trusted by over a million policyholders. With all that experience, we can help walk you through government regulations to get a workers' compensation policy that you and your employees can feel good about.
