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workers compensation insurance

workers compensation insurance

Why Do You Need Workers’ Compensation Insurance?

Workers’ compensation insurance helps your employees recover from work-related injuries or illnesses so they can get back to work faster.

What Is Workers’ Compensation Insurance Coverage?

Workers’ compensation insurance, also known as workman’s comp or workers’ comp, gives your employees benefits if they get injured or become ill from their job. These benefits can help: 

  • Cover their medical care and medical treatment
  • Replace most of their lost wages if they take time off from work to recover
  • Provide disability benefits
  • Give death benefits, like helping pay for a funeral if they lose their life in a work accident or from a job-related illness

Workers’ comp also has benefits for you, the small business owner. It includes liability insurance coverage. So, if your business faces lawsuits from injured workers or their families, workers’ comp can help pay for your legal costs. You aim to run your business as safely as possible. However, no matter what you do, workplace accidents can occur and employees can get sick from their work. If these situations happen, you’ll want peace of mind knowing your small business is covered. At The Hartford, we’ve helped protect businesses with business insurance for over 200 years. So, if the unexpected happens, we’ve got your back and we’re here to help protect you, your employees and your small business.

How Does Workers’ Compensation Work?

Workers’ compensation protects employees. If one of your employees gets injured on the job or sick from their work, workers’ compensation gives them benefits to help them recover. It can help protect your workers if they:

It can also help pay to train your employees for new roles if they can’t return to their old roles. And, if they can’t return to work at all, workers’ compensation coverage can provide long-term disability benefits. Be aware that most states require employers to carry workers’ compensation coverage. Laws vary by state and can include exclusions for certain types of employees. For example, workers classified as federal employees get coverage through a program administered by the Department of Labor. We’ve designed our programs to support small businesses and we’re here to help promote your employees’ safety and well-being, helping them return to work as soon as possible.

Preferred Medical Provider Network

Your employees have access to over 1 million providers experienced in treating workplace injuries.

Prescription Drug Features

Your employees have access to more than 65,000 U.S. pharmacies to fill a prescription, usually with no out-of-pocket expenses, plus convenient mail-order service.

Needle Stick Reimbursement Program

If your worker gets hurt with a needle, this helps cover medical expenses and pays for the initial testing of your employee and their patient. It can also reimburse your employee for additional testing.

Nursed Back to Health Program

Highly experienced nurse case managers work with your employees to help coordinate healthcare and treatment. They can also help with physical, emotional and occupational therapies.

Pay-As-You-Go Billing Solutions

According to our policy data, most of our customers with less than $300,000 in payroll pay an average of $70 a month for workers’ compensation insurance.

How Much Is Workers’ Compensation Insurance?

According to our policy data, most of our customers with less than $300,000 in payroll pay an average of $70 a month for workers’ compensation insurance.Average Monthly Workers’ Compensation Cost for The Hartford’s Customers:1over $1M$500k – 1M$300k – $500k$150k – $300k$100k – $150k$50k – $100kunder $50kMove “Payroll” arrow to view approximate monthly cost.PayrollFor payroll amount: Approximate Monthly Cost~?An insurance company uses different factors to come up with workers’ comp rates. This can include your business’: 

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

The National Council on Compensation Insurance assigns classification codes based on the type of job workers do. If your business has a history of claims, this could increase your cost for coverage.  You can use this formula to estimate your workers’ comp insurance cost:

workers’ comp

 Don’t forget that this is a simplified formula to help you calculate coverage costs. If you’re wondering how to get workers’ compensation insurance, we can help. Getting a workers’ comp quote is the best way to find out how much coverage will cost your business.

Three Big Benefits of Payroll Billing

Less hassle, more help. We know what small business owners are looking for – and we’re delivering it.

Does your small business need workers’ compensation insurance?

For almost all businesses in the United States, yes. Workers’ compensation insurance usually isn’t optional.

While workers’ comp laws vary by statesmall businesses typically need a policy in place as soon as they hire their first employee.

Even when not required by law, this policy provides important protection against medical expenses and employee lawsuits related to workplace injuries.

You can rely on workers’ comp if you or an employee needs medical care or time off due to a workplace injury – or if an injured employee sues you for failing to prevent an accident.

If you don’t carry workers’ comp, your business will be responsible for any medical bills and legal fees. And most states levy costly penalties for noncompliance.

Small businesses find workers’ comp essential for three reasons:

  • Most states require workers’ comp coverage.
  • It covers medical expenses and partial lost wages due to a work injury.
  • Most policies also cover the cost of employee lawsuits related to a work injury.

Why is workers’ compensation coverage important?

A serious workplace injury could financially devastate your business. Many small businesses can’t afford to pay medical bills out of pocket, whether it’s the treatment for carpal tunnel syndrome or a broken leg.

Without workers’ comp coverage, both you and your employees are left in a difficult situation.

Does workers’ compensation protect against employee lawsuits?

In many states, yes. Most workers’ compensation policies include employer’s liability insurance to protect your business if an injured worker files a lawsuit against you for not preventing a workplace accident.

If an employee sues for negligence, your insurance company will pay for:

  • Attorney’s fees
  • Court costs
  • Settlements or judgments

Business owners in North DakotaOhioWashington, and Wyoming do not have employer’s liability insurance included in workers’ comp.

In these states, workers’ comp policies are purchased from monopolistic state funds, which do not offer this coverage. Insurance companies sell stop gap coverage to protect you from employee lawsuits.

Does workers’ compensation help cover fatal accidents?

Yes, most workers’ compensation policies include death benefits. These help a deceased employee’s loved ones pay funeral and burial costs after a fatal workplace accident.

Workers’ comp can also provide financial assistance for the deceased employee’s family.

Does workers’ compensation cover employees who contract COVID-19?

It typically depends on where an employee contracted COVID-19 (the coronavirus).

Workers’ comp insurance protects employees from on-the-job injuries and illnesses. If an employee contracts the coronavirus while working, then this policy should provide coverage.

For example, a nurse caring for sick patients or a grocery store worker who deals directly with the public would both have a stronger claim than an office worker. Workers’ comp doesn’t cover diseases unrelated to employment.

Your state’s laws could potentially help cover costs related to COVID-19. If you think you might be eligible for a claim, contact your insurance agency’s claims department.

How much does workers’ compensation insurance cost?

Male business owner calculating number of employees and other factors

Your cost is calculated based on a number of factors, including:

  • Payroll
  • Location
  • Number of employees
  • Industry and risk factors
  • Coverage limits
  • Claims history

Workers’ compensation insurance costs a median of $47 per month. 30% of Insureon’s small business customers pay less than $35 per month for this policy.

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