Workers’ Compensation Insurance

Workers’ compensation insurance, also called workers’ comp, provides coverage for medical expenses and lost wages for employees who are injured or become ill on the job. This coverage may also provide benefits for employee rehabilitation.

If you run a small business and have employees, you need workers’ compensation insurance. In fact, in nearly every state, workers’ compensation insurance is compulsory. If you run your business without workers’ compensation, you may be subject to fines. So, this is typically not considered optional business insurance coverage.

This is not a bad thing, however. Workers’ comp provides important coverage that protects both the employee and employer. It provides medical and rehabilitation benefits to an employee injured on the job, and legal defense to the employer if sued over workplace accidents.

The rules and regulations for dealing with workers’ compensation will be set by your state. Each state will be unique. Both employers and employees will be compelled to follow laws, regulations, and guidelines prescribed by the state. These regulations will help ensure that the employer provides for work-related injuries or occupational diseases, regardless of employee negligence.

Employees will only receive benefits if their injury or illness is a result of their job duties or employment. For example, workers’ comp insurance typically covers injuries caused by:

• Lifting
• Falling objects
• Slipping
• Accidents (eg. fires or explosions)

However, if an employee is injured outside of their employment on their personal time, hiking with friends or surfing. Workers’ compensation insurance does not provide coverage.

Typically, workers’ compensation has been purchased through insurance agents, like IronPoint. However, in recent years it’s become more common to quote or purchase workers’ comp online.

In most states, you can purchase workers’ compensation through private insurance carriers, like our carrier partners Travelers, Nationwide, The Hartford, or Berkshire Hathaway GUARD. However, in some states, business owners have limited options for securing a workers’ comp insurance policy. If you need coverage in Ohio, North Dakota, Washington, or Wyoming, you will have to contact your state for coverage.