Workers' Compensation


Insurance Education for On-the-Job Protection


Workers’ compensation insurance protects a business owner from the employer's statutory obligation to provide coverage for its employees who experience a work-related injury or illness on business premises or due to business operations. Nearly all U.S. states require employers to purchase a workers’ compensation insurance policy to cover employees. The law provides workers' compensation as the sole remedy for an injured employee. Check with your state insurance department to understand what is required for your specific business type.


Typically, workers’ compensation covers an injured employee’s medical expenses, rehabilitation costs and lost wages. Workers’ compensation insurance premiums are set by insurers. For a new business, premiums may be based on broad factors such as total company payroll, number of employees, earnings per employee and type of work performed. For an established business, workplace safety history also is a contributing factor to costs.


Workers’ Compensation Insurance Tips and Considerations

In addition to higher premiums, employers operating without workers’ compensation may be subject to fines and/or penalties. For workers’ compensation insurance rules and information specific to your state, contact your state insurance commissioner.