Workers Compensation Insurance

If a job-related accident injures, disables, or kills an employee - regardless of who was at fault - Workers Compensation insurance will compensate them, or their heirs, for their loss. This coverage is a form of “social insurance” designed to provide benefits to injured workers as quickly as possible, without drawn-out litigation.

Workers Comp Insurance covers employees at your place of business, during business-related travel (for example, a salesperson on the road), or in activities that promote your business (such as playing for the company softball team). Please be sure to verify coverage with your insurance agent.

A related policy (Employers Liability Insurance) extends coverage to third parties, such as visitors or customers, who are injured on your property, or by you or your employees away from the premises.

Workers Compensation Benefits

Workers Compensation Insurance benefits will reimburse employees who become ill, injured, or disabled on the job for:
  • Medical Expenses - with no time or dollar limit on an “open claims” basis. Loss of Income (after a waiting period) - provides the employee with a percentage of their income, up to a specified amount, for disability (permanent or temporary, partial or total). Death Benefit - pays a specific amount, usually a multiple of the employee's weekly salary. Rehabilitation - pays for retraining an injured employee for another position (for example, teaching an assembly-line worker to do a desk job).
  • Second Injury Fund - compensates employees whose earlier injuries make them more susceptible to another accident.

Workers Comp Insurance Premiums

As the business owner/employer, you'll pay premiums based on a rated percentage of your payroll. Your rating will change once a year, depending on a combination of:
  • The loss experience of your business (“experience rating”) - the higher your losses, the higher your premiums;
  • Your loss experience compared with that of other employers in the same business (“experience modification”).

This rating system gives businesses a powerful financial incentive to curb work-based risk exposures through comprehensive safety regulations and programs.

24-Hour Coverage

Some businesses offer their employees “seamless” coverage that provides reimbursement for illness and injuries that are either job-related (through Workers Compensation) or non-occupational.

Note: Because Workers Compensation Insurance does not cover you as an employer, we'd recommend that you look into special “Occupational Disability Income” insurance that will reimburse you for illnesses and injuries incurred around the clock.
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"No man goes before his time … unless the boss leaves early." - Groucho Marx

"Accomplishing the impossible means only the boss will add it to your regular duties." - Doug Larson

"There is no such thing as an accident; it is fate misnamed." - Napolean Bonaparte


U.S. Department of Labor
DOL Bureau of Labor Statistics
Occupational Safety and Health Administration