Workers’ Compensation Insurance
Protect your team and your business when the unexpected happens. Workers’ compensation insurance helps pay for employee medical care, replaces a portion of lost wages, and shields your company from costly claims after a work-related injury or illness.
Connect to Carrier
Workers’ Compensation Insurance
What is Workers’ Compensation Insurance?
Workers’ compensation insurance provides financial support after a job-related injury or illness. In every state except Texas, employers are required to carry coverage once they have employees, though exact rules vary by state. The policy is paid by the employer and helps cover medical bills, wage replacement, rehabilitation, and the company’s legal exposure tied to the incident.
Connect to Carrier
What is Workers’ Compensation Insurance?
What Does Workers’ Comp Cover?
Coverage varies by state and policy, but typically includes medical treatment, rehabilitation, and the benefits below.
LOST WAGES
If an injured employee cannot work, workers’ comp replaces a portion of their income while they recover. In many states this is up to about two-thirds of their average wage, subject to limits and waiting periods.
PERMANENT INJURY
When an injury causes a lasting impairment, workers’ comp can provide long-term benefits for permanent partial or total disability based on state guidelines.
EMPLOYERS’ LIABILITY
If an employee brings a lawsuit related to a workplace injury, employers’ liability coverage can help pay legal defense costs, settlements, and judgments.
DEATH BENEFITS
If a work-related incident leads to a death, benefits can help the employee’s dependents with ongoing financial support and funeral expenses.
RETRAINING
Vocational rehabilitation benefits can fund job training, placement support, and assistive services so employees can return to suitable work.
What’s not covered?
Workers’ compensation is limited to incidents specifically involving employees. It does not cover:
- Damages to customers or customer property
- Injuries to freelancers or contractors employed by the company
- Harm to equal owners and partners
- Damages to employees’ property
Workers’ comp also does not cover certain employee injuries that are sustained under these circumstances:
- Fighting
- Intoxication
- Intentional actions
- Emotional trauma unaccompanied by physical harm
Who is Workers’ Comp Insurance for?
COMPANIES WITH EMPLOYEES
If you have employees, you likely need workers’ comp. Most states require coverage even for a single employee. Requirements and thresholds vary, so it is smart to confirm your state’s rules.
COMPANIES WITH EMPLOYEES
If you have employees, you likely need workers’ comp. Most states require coverage even for a single employee. Requirements and thresholds vary, so it is smart to confirm your state’s rules.
NEW SMALL BUSINESSES
Hiring your first employee changes your obligations. As soon as your small business brings on staff, you should secure workers’ comp to stay compliant and protect your team.
NEW SMALL BUSINESSES
Hiring your first employee changes your obligations. As soon as your small business brings on staff, you should secure workers’ comp to stay compliant and protect your team.
Frequently Asked Questions
To put it simply: yes. The only reason a business should ever forego workers’ comp is if it legitimately has no employees. In most states, companies with even one employee must have workers’ comp insurance. However, some states require it only when you have three to five employees. Although not legally required in Texas, obtaining it is still a prudent decision.
The amount that a workers’ compensation policy pays out to the injured party varies depending on the state you’re in and how much you were making before you were injured. In most states, workers’ comp will replace up to two-thirds of the amount you were making before you were hurt.
Yes, workers’ comp recipients can work light or modified jobs while they’re injured. In this case, it is especially important for employees to comply with their doctor’s instructions in order to avoid violating the terms of their workers’ comp policy.
GET YOUR QUOTE NOW
Answer a few quick questions, compare matched carriers side by side, and connect to the right provider in minutes. PolicyApe keeps the process simple so you can get back to business.
Connect to Carrier