Workers compensation insurance protects the key players on your team – your employees. You count on them for the service, knowledge and expertise needed to move your business to the next milestone. They count on you to take care of them if the unexpected happens.
Who needs workers’ compensation insurance?
Workers compensation insurance, also known as workman's comp insurance or simply workman's comp, can help if:
An employee is injured in an auto accident while running errands for the company
An associate develops carpal tunnel syndrome from working on the computer
An employee gets hurt while restocking the supply room
How does workers’ compensation insurance work?
Workers’ compensation insurance works by providing benefits to employees who are injured or become ill due to work-related causes. When an employee is injured on the job, they can file a workers’ compensation claim with their employer. The employer then reports the claim to their workers’ compensation insurance provider, who investigates the claim and determines whether or not the injury or illness is covered under the policy.
If the claim is approved, the workers’ compensation insurance provider will pay for the injured employee's medical expenses, rehabilitation costs, and a portion of their lost wages. In exchange for receiving these benefits, the injured employee agrees not to sue their employer for damages related to the injury or illness.
Workers’ compensation insurance premiums are typically paid by the employer, and the cost of coverage can vary based on the industry, location, and size of the business. In general, the riskier the job, the higher the workers’ compensation insurance premiums will be.
Adding endorsements
You can enhance a basic policy with additional commercial liability insurance options that meet the specific needs of your business.
Who is covered by workers’ compensation?
Almost every state requires companies to carry workers’ compensation insurance to cover employees, but the laws vary by location and occupation. Some states will not cover seasonal employees, independent contractors, or agricultural employees, so it’s best to contact your state’s government agency to see if you are protected.
What doesn’t workers’ compensation cover?
Workers’ compensation insurance usually will not cover accidents that are a result of an employee being under the influence of drugs or alcohol. Coverage may also be denied for injuries caused intentionally or where an employee was not following proper protocol. Accidents that occur while at home or commuting will not be covered.
How much does workers’ compensation insurance cost?
Rates for coverage will depend on your state and payroll. Two other important factors that determine cost are the type of work your employees do, as well as any previous claims and workplace accident history. Talk to a Nationwide agent to learn more about specific coverage for your company.
