Support your team and strengthen your workplace.
A safe, healthy team is at the heart of every business. Workers’ compensation insurance enables your employees receive the care and support they need, in the event of a work-related illness or injury. Work comp covers medical expenses and lost wages, while helping workers recover quickly and return to work with confidence. For employers, workers’ compensation coverage provides peace of mind, stronger safety practices and protection from costly legal disputes.
Understanding Workers’ Comp Insurance
Workers’ compensation coverage ensures that employees and their families receive fair compensation for on-the-job injuries and illnesses. In exchange for this protection, employees accept workers’ compensation coverage as an exclusive remedy, meaning they cannot sue their employers. In this way, workers’ compensation insurance protects both the employee and the employer and helps to keep overall costs down.
Frequently Asked Questions
What is workers’ compensation insurance and how does it work?
Workers’ compensation insurance is a type of insurance that provides coverage for work-related illnesses and injuries. If a worker is injured on the job, the resulting claim can provide benefits to cover medical and rehabilitative costs, as well as lost wages. In the case of serious injuries and illnesses, workers’ compensation benefits may include permanent disability benefits or death benefits paid to the worker’s family.
The rules governing workers’ compensation are set at the state level. In most states, private insurance companies provide workers’ compensation insurance, allowing employers to compare their options to find affordable workers’ compensation coverage. However, a few states have a monopolistic workers’ compensation system, which means that employers are required to purchase coverage through a state fund.
How much does workers’ comp insurance for small business cost?
Workers’ compensation premiums are calculated based on payroll, loss history, and industry class codes, with some states having higher costs than others. Workers’ compensation insurance for small businesses will typically cost less than coverage for larger businesses because the payroll is smaller. However, your costs may be higher or lower depending on the other two factors.
If your company is in a high-risk industry, such as construction or agriculture, your class codes will reflect this, and your premiums will be higher as a result. On the other hand, if you work in a low-risk industry, your rates will be lower because there is less chance of a work-related injury or illness.
Your company’s loss history is also important. If you have more claims than what is considered average for your industry, your premiums will be adjusted to reflect this, and you will pay more for coverage. You can lower your premiums by implementing strong safety procedures that keep your claims below the industry average.
Other strategies may also help you keep down your workers’ compensation costs, such as verifying that your information is correct, implementing an early return-to-work program, and comparing plan options.
Who needs workers’ compensation insurance?
Most states require most employers to carry workers’ compensation insurance. Therefore, if you have any employees, even just one, you may be legally required to carry workers’ comp insurance for small business. See your state’s department of insurance for details.
Even if you are not legally required to buy workers’ compensation insurance, it may still be in your best interest to do so. If you do not have workers’ comp insurance and a worker is injured, the worker can sue your company. You’ll face legal costs as well as any settlements or judgements, and juries may be very sympathetic with a worker who was injured on the job. Workers’ compensation doesn’t just protect your workers. It protects your company.
Where can I find workmans comp near me?
Mavrix can help you find workers’ compensation coverage that meets your state’s requirements and your company’s budget.
How do I get a workers’ compensation insurance quote from Mavrix?
To get started, we’ll need to know a little about your business, including your industry and size. Use the link below to request a quote.