How Does Workers’ Compensation Insurance Work?

Workers’ Compensation

 

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance, also known as workman’s comp or workers’ comp, gives your employees benefits if they get a work-related injury or illness. These benefits can help:

 

  • Cover their medical care
  • Replace most of their lost wages if they take time to recover
  • Provide disability benefits
  • Pay for their funeral if they lose their life

Workers’ comp also has benefits for you, as a small business owner. If your injured employee or their family sues your business, it can help cover your legal costs.

You aim to run your business as safely as possible. However, no matter what you do, workplace accidents can happen and employees can get sick from their work. When these situations occur, you’ll want the peace of mind to know that your small business is covered

How Does Workers’ Compensation Insurance Work?

If one of your employees gets a work-related injury or illness, our workers’ comp insurance can help them at every step of their recovery. We’ve designed programs to support small businesses. We’re here to help promote your employees’ safety and well-being, and to get your injured employees back to work as soon as possible.

 

On top of helping cover their treatment, our workers’ comp insurance can also help pay to train your employees for new roles if they can’t return to their old ones. And, if they can’t return to work at all, workers’ comp can provide long-term disability benefits.

Workers’ compensation insurance can help protect your employees if they:

  • Trip walking up the stairs in your office
  • Develop carpal tunnel syndrome from poor typing habits
  • Get hurt in a car accident while visiting a client

 

How Much Is Workers’ Compensation Insurance?

Insurance companies use a number of different factors to come up with your workers’ compensation insurance cost, such as your:

 

  • Payroll
  • Industry
  • Employees’ type of work
  • Claims history

Every small business is unique. So your workers’ comp cost will most likely be different than other companies.

You can use this simple formula to estimate your workers’ comp insurance cost:

 

 

The National Council on Compensation Insurance assigns classification code rates based on the type of job workers do. And if your business has a history of claims, this could increase your workers’ compensation cost.

 

Don’t forget this is a simplified calculation just to give you an estimate. An insurance company’s actual calculation is more complex, but you can get a workers’ comp quote to find out your actual cost.

 

Start with your zip code to compare car insurance

Start with your zip code to compare Home insurance

Start with your zip code to compare life insurance

Start with your zip code to compare health insurance

945+ Reviews

Client Logo

Very helpful fully explaining the different plans. Cash value is accessed via policy loans, which accrue interest and reduce cash value our valuable items.

Maria Marlin
Client Logo

Very helpful fully explaining the different plans. Cash value is accessed via policy loans, which accrue interest and reduce cash value our valuable items.

Maria Marlin

Proudly Work with