Your employees or you yourself can get injured while working. And workers’ compensation insurance provides the quickest solution.
There are many explanations about what’s workers compensation and its function. That’s why we’ve made this guide so that you learn:
What is workers’ compensation and how does it work in general
How does workers comp work in some US states
What to do if your workers comp claim is rejected
By the way, workers compensation insurance can be expensive. And so, you might want to read another guide we made that talks about the cost of workers compensation insurance.
Also called workman’s comp or workers comp, Workers compensation is a type of casualty insurance policy that’s designed to cover employers and employees against work-related injuries or diseases.
Except for Texas, all states of the US require businesses to get workers compensation insurance through their own workmen comp laws and the Federal Employee’s Compensation Act (FECA).
Workers compensation functions to provide benefits to employers and employees. Here’s how it works:
Workers compensation insurance helps employees cover unexpected expenses that result from workplace injuries or diseases
Workers compensation insurance protects employers by preventing employees from filing negligence lawsuits by virtue of the exclusive remedy principle
Note that this is just a general explanation of the functions of workers compensation insurance. How the policy works in practice differs greatly depending on the workers comp laws of each state.
Let’s discuss what does workers comp cover next.
Workers compensation insurance takes care of the following costs if an employee sustains a work-related injury or disease:
Emergency medical treatment
Funeral expenses and allowance to dependents
Aside from asking what does workers compensation cover, you must also ask who it covers. In a nutshell, workmans comp applies to:
You, as the employer, can also choose to cover yourself through workmen comp insurance. Most insurance companies allow this since the owner is also considered an employee. You can even name directors and officers as insureds.
Compensation for workers is very important. And so, failure to get workers compensation insurance will result in:
An accumulating fine
Loss of exclusive remedy
Workers’ compensation payments fall on the shoulders of the employer. Laws in the US prohibit employers from passing the burden to employees. If the employer does otherwise, employees can file a complaint to their state’s bureau of workers compensation.
Depending on the location, you or an employee will be filing a workers comp claim. But when to file workers comp claim anyway? This entirely depends on how your state implements its workers comp system. Nonetheless, it’s recommended that you or an employee file a workman comp claim within the first week a work-related injury or disease occurred.
In connection, the bullets below lay down the workers comp claim process in general:
The employee creates an official report of what happened
The employer gathers report from witnesses (if there are any)
The employee’s medical records is furnished
The employer and employee download workers compensation forms for the claim
The papers are then sent to the authority who underwrote and granted workers compensation insurance
Insurance companies can reject workman’s comp claims for the following reasons:
The insurance company didn’t have a thorough picture of what happened
You failed to provide the necessary papers
Though well documented, the occurrence falls out of the scope of your workers compensation insurance
The employer or the employee failed to file a workers comp claim at the time prescribed by the insurer and workers comp laws
The rejection of workers compensation claims can be disputed. Get a qualified workers comp attorney and send a complaint to your state's bureau of workers compensation. .
Now that you know how do workmans comp claims work, let’s discuss how you can apply for the policy.
So how to apply for workers comp? Here are how you get workers compensation insurance for your business:
Get it from a private commercial insurance company authorized to sell insurance in your state
If you’re in a monopolistic state, get covered by the state department that manages and sells the workers comp for businesses
Request authorities to allow you to self insure
Qualify for the state’s assigned risk pool
Get all the best quotes from leading providers in a click of a button!
Understanding workers compensation is better done if you know what is workers compensation and how does it work in some US state.
The coverage of workers compensation insurance varies based on location because each state legislated their workman compensation law differently.
That said, we’ll give you a quick overview of how workers comp works in different states in this section.
Ohio workers compensation insurance was implemented in 1912. As one of the monopolistic states, Ohio recommends businesses to get workers compensation insurance from its Bureau of Workers Compensation. Note that businesses can also request the BWC to grant permission for self-insurance.
Workers compensation Ohio covers costs if an employee:
Gets injured because of work
Sustains a disease because of work
Dies while dispensing his or her duties at work
You need to get workers compensation insurance in Ohio as soon as an employee starts his first day of work. In connection, this are the most common entities authorities require to get worker compensation insurance:
Independent and sub-contractors with one or more employees
Corporations with multiple owner/officers
Ohio businesses that hire employees from other states for 90 days or more
Employers of domestic helpers
Businesses not classified as exceptions and have one or more employees
Ohio’s workers compensation act exempts the following from getting workers compensation insurance for employees:
LLCs acting as a sole proprietorship
LLCs acting as a partnership
Corporations with no employees
Ordained and associate ministers of religious organizations
In Ohio, workmen’s compensation insurance takes care of the following:
Lost wages (up to 72% of the average wage)
Medical benefits (hospitalization, medication, and treatment)
Workers compensation insurance was implemented in 1902. Businesses in the state can get coverage from private insurers.
Maryland’s Workers Compensation Commission sees to it that employers satisfy the requirements and insurance companies provide timely and adequate coverage.
Workers compensation Maryland can be claimed when an employee sustains a work-related injury or disease by accident. Maryland is very vocal in saying that workers comp coverage isn’t guaranteed just because an employee got injured or sick on the job.
Workers compensation insurance in Maryland provides the following benefits:
Temporary partial disability benefits (50% of the average weekly wage)
Permanent total disability benefits if an employee loses arms, legs, hands, and eyes or a combination of these body parts
Permanent partial disability benefits ($50 weekly compensation)
Vocational retraining benefits
Maryland requires businesses with one or more full-time and part-time employees to get workman’s compensation insurance.
Businesses in Maryland that are eligible for IC-16 Exclusion Form filing can operate without workers compensation insurance. Here are some examples of such businesses:
Business who only have corporate officers as employees
LLCs who only operate with members who decided to forego workers’ compensation insurance
Sole proprietors, individuals, and partnerships who operate a class F vehicle and without any employees
Texas is the only state in the US where employers can’t be penalized for failing to get worker’s compensation insurance.
The State of Texas manages its own workers compensation insurance programs. Texas allows businesses to get workmen compensation in two ways-self-insurance and private insurers.
Workers compensation in Texas provides coverage when an employee sustains an occupational injury or disease. However, the policy doesn’t grant help all the time. Claiming workers compensation insurance can’t be done if:
The work-related injury or disease is self-inflicted
The injury or disease was sustained due to negligence or intoxication
The employee sustained an injury or disease while off from work due to a work-related injury or disease
Was working but intentionally injured by someone else (e.g. fistfight, etc.)
Was injured to an a hurricane, storm, flood, tornado, and other acts of God (an exception applies to workers who face this perils by virtue of their jobs)
Texas workers compensation insurance grants these benefits to an employee who sustained a work-related injury or disease:
Temporary income benefits
Impairment income benefits
Supplement income benefits
Lifetime income benefits
Texas doesn’t state when employers must get workers comp insurance. But note that failure to get one means losing the exclusive remedy granted by the state to business owners. This is why most businesses get workmens comp in Texas even if no stiff fines are in place.
Alabama workmans compensation insurance grants benefits to employees and employers. The policy ensures that employees receive money if they become sick or injured. On the other hand, employers with workmen’s compensation insurance enjoy immunity from employee lawsuits.
Alabama workers compensation insurance provides coverage if these conditions are met:
The employee covered is working for a business who is required by Alabama workers’ comp insurance laws to get insured
The injury or disease must be accidental in nature
The injury happened while the covered employee is at work or doing work
Workmans comp for businesses in Alabama is designed to provide the following to the employee:
Weekly compensation benefits
Hospital, medical, and surgical treatment benefits
Alabama requires businesses with five or less employees to get workers compensation insurance. Officers are considered as employees and must also be covered by the policy.
Workers compensation insurance in Alabama isn’t required for businesses or entities that classify as a:
The Alaska Workers Compensation Act requires businesses to get workers compensation insurance.
Alaska doesn’t have a state fund for workers compensation insurance. Businesses must strive to get covered by private commercial insurance companies. Those who can’t get covered can get covered through Alaska’s assigned risk pool managed by the National Council On Compensation Insurance.
The Alaska Division of Workers Compensation oversees the implementation of workers compensation rules and regulation in the state.
Alaska workmans comp insurance grants benefits when an employee sustains an occupational disease caused by work conditions on or after November 7, 2005.
The workers compensation insurance in Alaska is designed to provide these benefits to an employee who sustained a work-related injury:
Disability and impairment benefits
Employers having one or more employees are required to get workers compensation in Alaska unless their business is one of the exceptions.
These are entities and businesses exempted from getting workers compensation insurance in Alaska:
Limited liability companies
Non-commercial cleaning businesses
Hockey teams (only applies if members have health insurance)
Real estate licensees
Transportation network company drivers
Workers compensation insurance in Arizona is a no-fault system wherein an employee can receive medical and compensation benefits regardless of he or she’s the one to blame for sustaining a work-related injury or disease.
The Industrial Commission of Arizona oversees the implementation and management of workers compensation insurance in the Lone Star State.
Arizona worker compensation insurance takes effect when an employee sustains a work-related injury due to an accident, the employer's negligence, or his own negligence.
These are the benefits provided by Arizona’s workers compensation insurance:
Permanent impairment benefits
Temporary impairment benefits
Coverage for lost wages
Businesses in Arizona must get workers compensation insurance as soon as there are one or more employees. The workers compensation act of Arizona defines employees as part-time, full-time, minors, foreigners, and family members working for a business.
Arizona doesn’t require workers compensation insurance from the following:
Sole proprietors with no employees
Businesses working with independent contractors
Businesses that work with casual employees
Arkansas workers compensation insurance is a coverage paid by the employer on behalf of employees. In the state, employees are responsible for filing a workers comp claim. The Arkansas Workers Compensation Commission oversees the implementation of workers compensation insurance in the state.
To understand how workers compensation works in Arkansas, you must remember that the policy only covers work-related accidents. Workers compensation insurance in Arkansas doesn’t cover injuries due to self-harm, malice, or negligence.
Another thing to know about how worker compensation works in Arkansas is that it only provides these benefits:
Payment for lost wages
Total disability benefits
Arkansas exempts these businesses or entities from getting workers compensation insurance:
Railroad and maritime workers
Employers pay $101 per month or $1,212 per year for workers compensation insurance having a $100,000 coverage. Factors that affect premiums are:
Number of employees
In addition, here’s a table showing how much workers comp insurance cost from the best companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$14||$168||Best overall; Fastest workers compensation insurance|
|Thimble||$88.92||$1,067.04||On-demand workers compensation insurance|
|CoverWallet||$90||$1,080||Workers comp insurance online quotes comparison|
|Hiscox||$104.50||$1,254||Workers comp insurance with risk management resources|
|CommercialInsurance.Net||$125||$1,500||Comparing workers comp insurance quotes over the phone|
|Cerity||$130||$1,560||Short-term workers compensation insurance|
Get the best workers comp insurance by comparing quotes. Click the “Get Quotes” button on this page to start.
Get all the best quotes from leading providers in a click of a button!
Are you looking for the best workers comp insurer? There are many options. And so, here are some reviews that talk about the pros, cons, and rate of the best choices.
Issues an online proof of insurance instantly
Great customer service and reputation
Outstanding value for money
Bundle workers compensation insurance with other policies and get a 10% discount
Couldn’t find any
NEXT offers workers compensation insurance for small and big businesses. Note that the company might reject coverage if your business’s risk profile is very poor. This company’s workers compensation insurance has a $100,000 minimum coverage for bodily injury or disease.
When getting workers comp from NEXT, don’t forget to bundle the policy with general liability or commercial property insurance so that you get a 10% discount.
Best for: Best overall; Fastest workers compensation insurance
Average cost: $14 per month
Our rating: 10/10
Easy online policy management
Compare workers comp insurance online for free
You can cancel your policy anytime
Not an insurance company but a broker selling the quotes of its partners
CoverWallet is an insurance broker that sells the workers compensation insurance quotes of its partners such as Chubb, Hiscox, and Liberty Mutual.
The workers compensation insurance of this company provides a $100,000-$500,000 coverage for each bodily injury or disease. Moreover, CoverWallet includes an employer’s liability coverage in its workers compensation insurance.
Use CoverWallet’s online quotes comparison tool and get covered online instantly.
Best for: Workers comp insurance online quotes comparison
Average cost: $90 per month
Our rating: 10/10
Call and compare workers compensation insurance quotes over the phone
Responsive customer service
Can refer you to partners if it can’t provide coverage
Underwrites workers comp that’s sold by other carriers and brokers
You need to call to get a workers comp insurance quote
CommercialInsurance.Net underwrites workers comp insurance for a wide range of businesses. It doesn’t follow any underwriting appetite. That’s why you need to call and talk to a representative who will decide whether your business is insurable or not.
Don’t worry if CommercialInsurance.Net can’t cover you with its workers comp insurance. It can refer you to partners who underwrite great workers comp policies too.
Call CommercialInsurance.Net now to compare workers comp insurance quotes over the phone and get quick coverage.
Best for: Comparing workers comp insurance quotes over the phone
Average cost: $125 per month
Our rating: 10/10
Offers workers comp to businesses, freelancers, and professionals who can’t get coverage from mainstream insurers
Fast online proof of workers comp
The only way to contact customer support is online
Thimble workers comp insurance is for small businesses, freelancers, and independent professionals. Note that this company’s workers comp insurance takes effect on the day you purchase it.
Best for: On-demand workers compensation insurance
Average cost: $88.92 per month
Our rating: 10/10
Workers compensation can be bundled with small business liability insurance
Available in all 50 states and the District of Columbia
Complaints are too many for such a popular company
Hiscox partners with CyberPolicy to offer workers compensation insurance to its customers. Similar to NEXT, this company’s workers compensation insurance has a $100,000 per occurrence limit. Moreover, employer’s liability insurance is included in the terms of the policy.
Best for: Workers comp insurance with risk management resources
Average cost: $104.50 per month
Our rating: 9/10
Specializes in underwriting short-term and long-term workers comp insurance
Get a quote online
Covers perils not covered by most workers comp insurers
Only sells workers comp insurance
Cerity insurance is a company that only underwriters workers compensation insurance for independent professionals and small businesses.
This company is great because it offers temporary workers comp coverage on a monthly basis. Moreover, its workers compensation insurance covers perils not covered by most insurers-food poisoning, injuries resulting from company social events, and encounters with wild animals while working.
Best for: Short-term workers compensation insurance
Average cost: $130 per month (starts at 20 per month)
Our rating: 10/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow