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:
Lost wages
Medication
Hospitalization
Emergency medical treatment
Lost wages
Rehabilitation
After-hospital visits
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:
Part-time employees
Full-time employees
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:
Imprisonment
An accumulating fine
Loss of exclusive remedy
Cease-and-desist order
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
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:
Sole proprietor
Partnerships
LLCs acting as a sole proprietorship
LLCs acting as a partnership
Family farms
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)
Death benefits
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)
Medical/hospitalization benefits
Wage benefits
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
Medical benefits
Burial benefits
Death 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
Death 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:
Domestic employer
Farm employee
Casual employee
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
Death benefits
Medical benefits
Reemployment 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:
Partnerships
Sole proprietors
Limited liability companies
Non-profits
Baby sitters
Non-commercial cleaning businesses
Sports officials
Independent entertainers
Commercial fishers
Taxi drivers
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
Death 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
Independent contractors
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:
Medical benefits
Payment for lost wages
Rehabilitation services
Total disability benefits
Arkansas exempts these businesses or entities from getting workers compensation insurance:
Railroad and maritime workers
Farms
Domestic helpers
Non-profit organizations
Religious organizations
Charitable organizations
Relief organizations
Employers pay $101 per month or $1,212 per year for workers compensation insurance having a $100,000 coverage. Factors that affect premiums are:
Location
Size
Business history
Claims history
Number of employees
Revenues
Payroll
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.
Best overall
Issues an online proof of insurance instantly
Great customer service and reputation
Excellent rates
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
Stable rates
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
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
Decent experience with Hiscox business insurance
Best insurance ever
Coolest concept, I wish this was applied to other insurance products too.
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
Simple online quoting and purchase. excellent mobile app. claims filing via phone, website or app. Combines competitive rates with excellent customer experience. Progressive provides all of the coverage a small business needs. not to mention its financial strength
Excellent business insurance coverage tailored to your business needs in good rates, professional customer service, pays claims fast and fairly. Recommended!
Not recommended, worst company I've dealt with. Denying claims regularly.
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
I never purchased the policy. The person I spoke with "Bruce" was condescending and argumentative. He kept repeating himself and talking in circles telling me what I HAVE TO DO, basically trying to bully me into purchasing commercial insurance. I wouldn't use this company if they were paying me!
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
As a startup founder with plenty of things on my mind to take care of every day to make sure our startup is set for success, Embroker was the right insurance company at the right time to make sure our startup is financially covered without spending much time, money and hassle.
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
Great experience
MUST-HAVE insurance app for carpenters!
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
Love their data based recommendations!
Good tailored coverage for my business. Claims process is smooth and fast. Happy with Markel!
CNA doesn't pay claims and doesn't care about its customers. I do not recommend it to anyone. Waste of money!
Bad experience, they didn't pay any claims. Stay away!
Excellent variety of international business insurance solutions. Starr helped us set our business insurance in areas that we had no idea how to approach for such complex insurance coverage.
They have not replied to any of my emails, never answered the phone and following countless voicemails, haven't got followed up even once. Stay away.
I was injured during work back in 2017. Been through 4 medical operations. Had no choice but hiring a lawyer since they didn't cover my medical bills! Moreover, they even hurt my credit score due to more than $75k in medical bills!!! All medications have not been approved by them, and I was left with no choice but going months without pain relief medications and others. This insurance company has been incompetent, unreliable, disrespectful and unprofessional - I do not recommend any small... Read More
I am a small business owner who used Employers workers compensation insurance services for eight years. Yet, the moment I actually needed them, they have failed to deliver. AVOID.
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Purchased Workers Compensation Insurance through one of Berkshire Hathaway GUARD Insurance Companies agents. According to the payroll info, they were supposed to collect a monthly premium. Despite the fact that my business did not have any employees throughout the coverage period, they collected almost $60 from the payroll. Decided to cancel the policy, yet we received a payment request for almost $2,800 one year later. A workers comp insurance policy from legitimate insurers never exceeds $500... Read More
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
I own a business and filed a claim because one of our commercial vehicles was damaged. They promised to send a professional to estimate the damage caused to the car but never came or got in touch! I’ve tried to contact them recently yet there is no answer! There are better companies out there
Business owners stay away from this company!! They do not pay legitimate claims... They hire a company that uses lawyers to deliberately deny all claims. Avoid..
AmTrust's claim handling was very unprofessional. A whole two weeks is the time it took to get a reply, however it was only when asking for supervisors that things started to really move. They denied the claim though and haven't paid for my commercial car repair expenses despite a receipt and proper coverage. Not recommending anyone to buy this product from them.
AVOID!!!! Atlas charged us two hundred percent extra following a simple annual audit. When we filed a claim they weren't accessible for reviewing it so we had to cancel the claim!
Insuranker
Policy Type: Business Insurance
Company name: American Builders Insurance Company: ABIC Insurance
Excellent providers of contractors insurance from quote to claims! Rates are great and policy management and administration is easy! Good company overall!