Workers' Compensation Insurance
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Frequently asked questions about workers’ compensation

We’ve compiled some of the most frequently asked questions about workers’ comp. Have additional questions? Contact a licensed Insureon agent for more details and guidance.

 

How to buy workers’ compensation insurance

 

How quickly can I get insurance coverage with Insureon?

Our online application for workers’ compensation insurance takes about 15 minutes to complete. In most cases, we’ll deliver quotes from multiple carriers as soon as you finish the application. Once you purchase a policy, you can access your account and obtain a certificate of insurance, which is a formal proof-of-insurance document.

How does Insureon’s workers’ compensation insurance application work?

The workers’ compensation insurance application requires some basic information about your business, including where it’s located, the number of employees, and your estimated annual payroll. It will take you approximately 15 minutes to complete. When you're finished, you'll receive quotes from multiple carriers. Look them over and pick the policy that works best for you. A licensed Insureon insurance agent is available to assist you throughout the process.

What types of businesses does Insureon offer workers’ compensation insurance to?

Insureon specializes in small business insurance for numerous industries. Our insurance agents specialize by industry and have helped more than 200,000 businesses, including:

Building design professionals

Consultants

Cleaning businesses

Construction workers

Finance and accounting professionals

Healthcare professionals

IT businesses

Nonprofit organizations

Photographers

Real estate agents

 

Workers’ compensation insurance requirements and coverages

 

Is workers’ compensation insurance required by law?

Each state sets its own regulations for workers’ comp. Most states require it as soon as you hire your first employee. Texas is the only state where it’s optional for employers to purchase workers’ comp.

In addition to differences across states, the construction industry often has separate rules from other industries. Visit our state laws for workers’ comp page to learn about the requirements in your state.

What expenses does workers’ compensation insurance cover?

Workers’ compensation insurance helps pay for medical expenses and partial lost wages resulting from a work-related injury or illness. In the event of a fatality, it also pays death benefits, such as funeral insurance. Read more about workers’ compensation coverage.

Does workers’ compensation insurance cover independent contractors?

Workers’ compensation insurance does not typically cover independent contractors. However, in certain situations someone who is self-employed or an independent contractor might want to purchase a policy. Read more about workers’ comp for self-employed individuals, independent contractors, and subcontractors.

How can I avoid employee misclassification lawsuits and penalties?

The cost of workers’ compensation depends in part on the type of work done by your employees. That means you must make sure your employees are classified correctly to avoid lawsuits and penalties. Each worker must be assigned a class code that accurately reflects their work environment and level of risk.

 

Workers’ compensation policy changes and claims

 

What do I do when an employee is injured at work?

When an employee is injured at work, your first responsibility is ensuring the safety of your workers. Your immediate response should be to assist the injured, get workers to a safe area, and contact emergency medical services if anything more than basic first-aid is needed. When the situation is under control, talk to witnesses and take notes to document what happened.

How do I file a workers’ compensation insurance claim?

When you or one of your employees is injured, you must:

  • Give the employee the appropriate paperwork and guidance.
  • File the claim with the insurer.
  • Comply with state law for reporting work injuries.

To make a workers' compensation claim, the employee must report the injury within a certain time frame, which varies depending on your state. The employer should provide the employee with appropriate paperwork, including a claims form, and submit it to the insurance carrier.

In some states, incidents must be reported to the state workers’ comp board. The employee may also need to seek medical treatment from a doctor approved by the board. Your agent can guide you through the process and provide answers to any additional questions.

What happens if I need to buy more insurance later?

If you hire more employees, your workers’ compensation premium will change accordingly. It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on your policy, and provide assistance if you need to purchase additional policies.

What happens if I cancel my policy?

If you cancel your policy early, you run the risk of paying more for coverage down the road. Plus, since workers’ comp is often required by state law, you could be Insurance companies typically charge higher rates to businesses that start and stop coverage. You also leave your business exposed to potential risk if you cancel your coverage.

How do workers’ compensation settlements work?

If the injured employee is not satisfied with the insurance company’s offer on a claim, the employee can pursue a settlement with the help of an attorney. The employee, the attorney, and the insurance company will negotiate to find an amount that satisfies all parties. The employer should stay involved and informed to reduce the chance of a lawsuit.

 

Compare workers’ compensation insurance with other policies

 

Workers’ compensation vs. employer’s liability insurance

Workers’ compensation protects an employee from medical expenses and lost wages associated with an on-the-job injury. Additionally, the employer’s liability section of workers’ comp protects the employer from lawsuits related to an injury, such as claims that the employer’s negligence caused the injury.

Your workers’ compensation insurance includes employer’s liability insurance – unless you purchased workers’ comp from a monopolistic state fund. If so, you can add this insurance as an endorsement from a private insurer. Read more about employer’s liability insurance.

Workers’ compensation vs. general liability insurance

Workers’ compensation and general liability insurance can both pay for medical expenses related to injuries at your business. However, general liability does not cover employee injuries. To extend this protection to your employees, you will need to purchase workers' comp insurance, which covers the costs associated with employee injuries or illnesses. Depending on which state your business is located in, you may be legally required to purchase workers’ comp coverage.

Workers' compensation insurance: Further reading

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