What Is Workers Compensation Insurance (Workers Comp)?

Workers Compensation Insurance Coverage

What Is Workers Compensation Insurance (Workers Comp)?

 

Workers compensation insurance coverage, also known as workers comp, protects both the business owner and employees from 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 workers compensation coverage.

 

Why Is Workers Compensation Insurance Coverage So Important?

 

Workers 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 Workers Compensation Insurance?

 

Workers 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 workers compensation policy, we can also maximize the discounts available.

 

Workers 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 Workers 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 Workers 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 Workers Compensation Coverage?

 

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

 

How To Buy Workers Compensation Coverage

 

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

 

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