Workers Compensation

Workers Comp

Employers cover medical costs and lost wages for work-related injuries to protect employees and maintain business operations.

Who is Workers Compensation Insurance for?

Employers in most states must get workers’ compensation insurance, except Texas. Not having it could mean jail time, penalties, fees, and not being able to work. Buying from private insurers is the most common option.

Companies with Employees

All employers must get workers’ compensation insurance to safeguard their staff and business financially.

Companies Hiring Contractors

Some states require companies to buy workers compensation for contractors they hire.

Companies Engaging Trainees

Businesses hiring trainees or temporary staff require workers’ comp insurance.

Why You Need Workers Compensation Insurance?

If an employee gets injured at work and can’t work for a while, their medical expenses and lost income are typically the employer’s responsibility. Workers’ compensation insurance covers these costs, so owners don’t have to use business savings or deal with lawsuits.

Annual Workplace Injuries

Workers suffer 12,900 injuries per day, resulting in 7 million injuries annually. The financial impact is significant.

Most Common Injuries

Common workplace injuries include sprains, soreness, and cuts.

Direct Financial Loss

More than 150,000 people get hurt at work, leading to lost money and time. This costs the economy over $170 billion in direct losses.

Reasons to Get Workers Comp Insurance

What Does Workers Compensation Insurance Cover?

Check your policy for coverage details, but here are some examples of what is covered by directors and officers insurance.

Medical Expenses

If an employee gets injured at work, this policy pays for their medical expenses.

Lost Wages

This policy pays for employees’ lost wages due to workplace injuries.

Disability Benefits

If an employee gets injured on the job and becomes disabled, this policy gives them some of their lost wages during that period.

Death Benefits

If an employee dies due to a work injury, their dependents get a death benefit payout.


Some states offer job and mental health support for workers hurt on the job.

Workers Compensation Insurance FAQs

How Much do Costs Vary by State?

Three types of states affect premium costs for workers’ compensation: those with different requirements.

Local laws and high-risk jobs in some areas result in higher rates for workers’ compensation. New York recently increased the claim payout, which may have affected its workers’ compensation rate.

38 states have rates lower than $2 per $100 in employee wages. North Dakota has the lowest at $0.82, with Indiana, Arkansas, West Virginia, and Utah following closely. New York has the highest rate at $3.08, followed by California, New Jersey, Alaska, and Delaware.

How much does Workers Compensation Insurance cost?

Premiums for workers’ compensation insurance vary depending on the state. Although classification codes are consistent throughout the US, workers’ compensation rates are set individually by each state.

The basic estimation is:

Premium = (Payroll/$100) x Class Code Rate x Experience Modification Rate

A business with $100,000 in payroll may pay approximately $1,350 per year at a workers’ compensation rate of $1.35. But, only an insurance carrier quote can give you the final amount.

What's Not Covered?

Bad stuff happens.

Imagine a policy that actually covers it.

Shoot us your email and we’ll kick off a conversation to help get you a quote on the best coverage for your brand.