Workers’ compensation insurance, commonly called workers’ comp, is insurance that covers medical expenses and some of the lost wages for workers who become injured or ill on the work. Coverage also includes employee rehabilitation and death benefits.
How does workers’ compensation insurance work?
Each state has its own unique set of workers compensation audit that employers must follow. These regulations help ensure that employers provide coverage for the cost of work-related injuries or occupational diseases, regardless of employee negligence.
An employee can only receive benefits if their injury or illness relates to their job duties or employment. Workers’ comp insurance could cover injuries caused by lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury thanks to fires or explosions.
If an employee isn’t acting within the scope of their employment and becomes injured, like playing football with friends on each day off, workers’ compensation insurance won’t cover them.
Who needs workers’ compensation insurance?
Workers’ compensation insurance is required by law in almost every state. Some worker exemptions exist, so you’ll want to see together with your state to seek out out if coverage is mandatory for your business.
Choosing to forgo workers’ comp coverage puts your business at high financial risk. Not only can you face a lawsuit for workplace injuries, but you’ll likely be fined for breaking the law.
Keep in mind, workers’ comp insurance protects not only your employees but your small business too. For example, if your insurance is compliant with state law, an employee who receives benefits can’t sue you for their injuries or lost wages.
They can, however, sue you for things that aren’t covered under the workers’ comp portion of your policy. Employer’s liability insurance is also included in your policy to pay for court costs and legal fees if you’re involved in such a lawsuit.
How much does workers’ compensation insurance cost?
In 2017, the national average monthly cost for workers’ compensation insurance through the Progressive Advantage® Business Program was $192. Remember, this is only an average. Your rate will depend upon specific qualities of your business including your state, payroll, and claims history.
Discover how these and other factors influence your workers compensation audit. You may also start a quote online, or contact us on to speak with an in-house agent who can assist you find coverage.
How to get workers’ comp insurance through the Progressive Advantage® Business Program.
We’ve partnered with select insurers who offer workers’ comp insurance in the following states:
If you would like coverage in Ohio, North Dakota, Washington, or Wyoming, you will need to contact your state to secure insurance. These states only allow businesses to urge workers' compensation insurance through them.
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