What Is Worker's Compensation Coverage?

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What Is Worker's Compensation Coverage?


Worker's compensation insurance coverage protects both the business owner and employees for the expense of on-the-job injuries or illness. The coverage provides injured employees with lost wages and medical care they need regardless of fault. Additionally, the business owner is protected against employee lawsuits over on-the-job injuries, illness, and claims. Therefore, most states require businesses to provide worker's compensation coverage.


Why Is Worker's Compensation Coverage So Important


Worker's compensation helps protect the employer from costly lawsuits and provides employees with lost wages and care should they be injured on the job.  

How Much Is Worker's Compensation Insurance


Worker's compensation coverage is calculated based on several factors:


  • Payroll

  • Location

  • Business type

  • Previous claims

  • Number of employees

  • Coverage limits


Additionally, the state industry category (class code) which is based on the frequency of claims in a particular industry, determines the cost of the coverage. Utilizing state websites, we can look up your business class code to calculate how much the workers' compensation policy will cost based on your business category. To help reduce the cost of the worker's compensation policy, we can also maximize the discounts available.


Worker's Compensation Discounts


We can maximize the discounts on your workers' compensation policy to help reduce the premium. Every policy includes discounts that your business may be eligible for. By maximizing the discounts available, we help reduce your cost and overall premium.


How To Get The Best Worker's Compensation Rate


When we review the information about your business, we rate the policy with the multiple insurance companies we represent and maximize the discounts available your business can receive on the worker's compensation policy. 


What Is A Worker's Compensation Audit?


Worker's compensation coverage is based on your payroll, the number of full and part-time employees, and business operations. As a result, small businesses can change from when you initially started your worker's compensation coverage policy, and your business may look and operate differently than when you first started. As a result, a worker's compensation audit checks your current business information and compares this with the original estimates from the previous year, and your premium may be adjusted accordingly.


When Do You Buy Worker's Compensation Coverage?


Depending on what type of business operations you are in, you should purchase the worker's compensation coverage when hiring your first employee.


How To Buy Worker's Compensation Coverage


Working with an independent agency can help you make the most educated decision in choosing the right worker's compensation insurance company and coverage limits for your business.


We are here for you. Call or click today for a coverage review or quote.