When employees elect to receive workers' comp benefits they usually agree to not sue their employers. Learn more about what workers’ comp covers.
Workers’ comp insurance protects against costly workplace injuries
U.S. employers collectively pay more than $1 billion per week for serious, nonfatal work injuries, according to Liberty Mutual. Even when workers’ comp is not required, it can protect businesses from the high cost of medical expenses associated with on-the-job injuries. Without workers’ comp, a business owner could end up paying those costs out of pocket.
Sole proprietors and partners with no employees are usually exempt from workers’ comp requirements, but they can still choose to purchase it to protect themselves. Additionally, clients may require you to purchase this policy to limit their own liability.
Does workers' compensation cover employees who contract COVID-19?
Workers' comp insurance protects employees from on-the-job injuries and illnesses. If an employee contracts the coronavirus because of their work (for example, doctors and nurses), then this policy should provide coverage. However, it doesn't usually cover diseases that are unrelated to employment.
Workers' compensation laws vary dramatically by state, so it's possible your state's laws will help cover costs related to COVID-19. If you think you might be eligible for a claim, contact your insurance provider's claims department.
Workers’ compensation insurance costs
Workers’ comp costs vary depending on where your employees are located and the type of work they do. A low-risk office worker will cost less to insure than a roofer. Factors that impact the cost include:
Employer's liability insurance is usually included in a workers' comp policy. This coverage protects business owners against lawsuits claiming that an employee was injured due to your negligence. Learn more about employer's liability insurance.