Workers' Compensation for Businesses
What is workers' compensation insurance? Sometimes called workman’s comp, it is an essential safeguard for businesses and their employees. It offers benefits to employees if workplace-related injury or illness happens.
Workers’ comp also offers financial protection to your business. Without proper coverage, an employee may sue you for costs associated with a work-related injury.
Main Street America Insurance has been providing workers’ compensation coverage for decades. We partner with local, independent insurance agents in your neighborhood to help you get the expertise you need. To get a workers compensation insurance quote, speak with an agent.
Who Does Workers’ Compensation Insurance Cover?
Workers’ Compensation covers employees; generally, subcontractors and freelancers are not covered.
Every state has its own rules and regulations about coverage. In some states, certain types of roles are not eligible for coverage, such as farm laborers, real estate agents, and so on. Your insurance agent can help you understand your local requirements and ensure proper coverage.
Workers' comp protects your employees and also your business. Coverage can help protect you from expensive lawsuits, regulatory fines and other risks.
What Does Workers’ Comp Cover?
Generally, workers’ compensation insurance provides coverage for the medical care, lost wages, and other expenses related to workplace injuries and workplace-related illnesses.
Medical Expenses
Covers the cost of medical treatments, hospital visits, medicine, and other medical-related expenses
Ongoing Care
Provides for necessary ongoing treatments such as physical therapy or rehabilitation
Lost Wages
Compensates employees for a portion of the wages lost while they are unable to work
Survivor Benefits
Offers financial support to the dependents of a worker who dies because of a job-related incident
Disability Benefits
Gives financial compensation to employees who suffer short-term or permanent disability
Employer Liability
Protects your business from lawsuits related to claims of workplace negligence
What is Not Covered by Workers’ Compensation?
Workers’ comp insurance does not cover certain situations at work. Here are a few examples that would not be covered by this type of policy:
- Accidents caused by a fight that the employee started
- Injuries caused by an intoxicated employee
- Emotional and mental health injuries
- Intentional acts by the worker
- Injuries caused by illegal acts
Who is Required to Carry Workers’ Compensation Insurance?
Most businesses must have Workers' Compensation insurance. State workers' compensation boards usually set the requirements and penalties.
Most states require you to have coverage once you hire your first employee.
You might not need coverage if you hire certain types of workers, business type, or state where you operate. If you are a sole proprietor or independent contractor, you may also be exempt.
Businesses who work with subcontractors should verify whether they have their own Workers’ Comp insurance to avoid potential liabilities.
How is the Cost of Workers’ Comp Insurance Determined?
You may be wondering, “How much does Workers’ Compensation insurance cost?” Policies can cost as little as $45 per month and increase on a variety of factors. The national average is $1.19 per $100 of payroll.*
The cost of your policy will vary based on factors such as:
- Your business’s industry
- The number of employees
- The size of your payroll
- The company’s safety record
- State requirements
- Loss history
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Get a Workers’ Comp Quote
If you’re wondering how to get a workers’ compensation insurance quote, contact a Main Street America Insurance agent today. We recommend you work with your independent insurance agent to find the right mix of coverage, service and price.
We currently offer workers’ compensation insurance in the following states: Arizona, Connecticut, Delaware, Florida, Georgia, Kentucky, Indiana, Maryland, Massachusetts, Maine, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia and Wisconsin.