Workers Compensation Insurance for Your Business

Workers' compensation insurance offers comprehensive coverage for work-related incidents. It typically covers:

• Medical Expenses: Costs for doctor visits, hospital stays, prescriptions, and ongoing therapy related to the work injury or illness.
• Lost Wages: Partial replacement of an employee's income if they are unable to work during recovery (also known as disability benefits).
• Vocational Rehabilitation: Assistance to help an injured employee return to work, potentially in a new role, if necessary.
• Death Benefits: Financial support for dependents in the unfortunate event of a work-related fatality. This coverage extends whether the injury occurs on-site or off-site while the employee is performing job duties, including for specialized areas like maritime workers compensation.

In most states, if you have one or more employees, you need workers' compensation insurance by law. This applies across a wide range of industries, including general contractors and specialized marine contractors. Failing to carry adequate commercial workers comp insurance can result in significant fines, penalties, and even criminal charges, in addition to leaving your business vulnerable to expensive lawsuits if an employee gets injured.

As premiums depend on several factors specific to your business. Key determinants include:

• Industry Risk: Businesses in higher-risk sectors (e.g., construction, manufacturing, specific maritime operations) will generally have higher premiums.
• Payroll: Premiums are typically calculated as a rate per $100 of your total payroll.
• Claims History: A history of workplace injuries and claims can lead to higher rates (experience modification rate).
• Job Classifications: Different roles within your business have different risk levels.
• State Regulations: Each state has its own workers compensation insurance requirements, rates, and rating bureaus.
• Safety Programs: Implementing robust workplace safety programs can often lead to discounts, helping you secure the most affordable workers compensation insurance.

You can get workers' compensation insurance through various channels. Most businesses obtain it through private insurance carriers or specialized workers compensation brokers like Casey Insurance Companies. Some states operate monopolistic state funds where you must purchase coverage directly from the state. We work with a wide network of carriers to provide workers comp quotes and solutions, including highly specialized areas like maritime workers compensation and Jones Act insurance.

The employer pays workers' compensation insurance premiums. It is a mandatory operating expense for businesses and cannot be deducted from an employee's wages. This ensures that employees receive benefits for work-related injuries without having to contribute financially to the insurance fund. It's an employer's legal responsibility to provide this safety net for their workforce, distinguishing it from an employee's health insurance, which is a separate benefit.