Workers Compensation Insurance
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Workers Compensation Insurance Guide
Coverage for employee injuries and illnesses occurring on the job
Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations.
What is Workers Compensation Insurance?
Workers Compensation Insurance provides essential protection for you and your family. Understanding how it works helps you make better coverage decisions.
Key Features
- Coverage details and benefits
- What’s typically included
- Common exclusions to be aware of
- Cost factors that affect premiums
Who Needs Workers Compensation Insurance?
Learn whether this type of coverage is right for your situation and how to determine the appropriate coverage amount.
How to Choose a Policy
Tips for comparing policies, understanding terms, and finding the best value for your needs.
Frequently Asked Questions
Common questions about workers compensation insurance answered.
Related Checklists
- Starting a Business Checklist - Coverage when hiring employees
Related Insurance Types
- Business Owners Policy - Bundled coverage for small businesses
- General Liability Insurance - Third-party injury and property claims
Related Guides
- Insurance for Small Business Owners - Complete employer coverage guide
- Find Your State Guide - State-specific workers’ comp requirements
Frequently Asked Questions
Is workers' compensation insurance required?
Most states require workers’ comp once you have employees (threshold varies from 1-5 employees depending on state). Texas is the only state where it’s optional for most private employers. Requirements also vary by industry—some states exempt certain workers like agricultural employees or domestic workers.
What does workers' compensation cover?
Workers’ comp covers medical expenses, rehabilitation costs, and a portion of lost wages for employees injured or made ill on the job. It also provides death benefits to families of employees killed at work. In exchange, employees generally can’t sue employers for covered injuries.
How are workers' comp premiums calculated?
Premiums are based on your payroll, industry classification (which determines your rate), and experience modification factor (claims history). Higher-risk industries pay more. Reducing workplace injuries improves your experience mod and lowers premiums over time.
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Business by State
Business requirements and costs vary significantly by state. Select your state for specific regulations, average premiums, and local resources.