Protect your business from employee injuries and illnesses – all for as low as $13 a month.1
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What Is Workers’ Compensation Insurance?
Workers' compensation insurance gives employees medical, wage and other financial benefits if they are injured or become ill on the job. This coverage is required in most states. Workers' compensation insurance is also known as workman's comp or workers' comp insurance.
How Does Workers’ Compensation Insurance Work?
Workers’ compensation insurance helps your employees recover from work-related injuries and illnesses so they can get back to work faster. Workers’ comp benefits can help:
- Cover medical care and medical treatment
- Replace most of their lost wages if they take time off from work to recover
- Provide disability benefits
- Give death benefits, like helping pay for a funeral if they lose their life in a work accident or from a job-related illness
- Cover costs related to a lawsuit from an employee’s work-related injury or illness
Keep in mind that workers’ comp doesn’t cover injuries that occur outside of work, intentionally, or while commuting to and from work. It also doesn’t cover accidents that occur due to substance abuse or intoxication.
How Much Is Workers’ Compensation Insurance?
Workers’ compensation insurance costs vary. But according to our policy data, most of our customers with less than $300,000 in payroll pay an average of $81 a month.2 Some policies can start as low as $13 a month.3 Of course, this is for customers with The Hartford. Workers’ comp quotes will vary in price, but you can see how much you’ll pay by getting a quote online today.
Who Needs Workers’ Compensation Insurance?
Almost all businesses need workers’ compensation coverage, but the most common industries are:
- Healthcare
- Manufacturing
- Restaurants
- Retailers
- Contractors
The Advantages of Workers’ Comp From The Hartford:
Preferred Medical Provider Network
Your employees have access to over 1 million providers experienced in treating workplace injuries.
Prescription Drug Features
Your employees have access to more than 65,000 U.S. pharmacies to fill a prescription, usually with no out-of-pocket expenses, plus convenient mail-order service.
Needle Stick Reimbursement Program
If your worker gets hurt with a needle, this helps cover medical expenses and pays for the initial testing of your employee and their patient. It can also reimburse your employee for additional testing.
Nursed Back to Health Program
Highly experienced nurse case managers work with your employees to help coordinate healthcare and treatment. They can also help with physical, emotional and occupational therapies.
Payroll Billing Solutions
Pay your premiums based on your business’ actual payroll, instead of an estimate.
Common Questions About Workers' Comp
What Does Workers' Compensation Cover?
Workers’ compensation helps your employees recover from work-related injuries or illnesses. It can help if your workers:
-
Trip while walking up the stairs in your office
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Develop carpal tunnel syndrome from poor typing habits
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Get hurt in a car accident on their way to visit a client
It can also help pay to train your employees for new roles if they can’t return to their old roles. And, if they can’t return to work at all, workers’ compensation coverage can provide long-term disability benefits.
What Doesn't Workers' Compensation Cover?
Some situations take place on the job and outside of work that are not covered by workers’ compensation insurance. Here are a few examples of what most workers’ compensation plans don’t cover:
- Injuries received by a fight that an employee started
- Injuries an employee sustains due to being intoxicated in the workplace
- Injuries an employee gets intentionally
- Emotional injuries that are not accompanied by a physical workplace trauma – learn more about mental health in the workplace
Is Workers' Comp Insurance Required?
Most states have workers' compensation requirements. Not carrying workers' compensation can lead to significant fines and penalties. The laws vary by state and can include exclusions for certain types of employees.
For example, workers classified as federal employees get coverage through a program administered by the Department of Labor.
How Is the Cost of Workers' Compensation Calculated?
An insurance company uses different factors to come up with workers’ comp rates. This can include your business’:
- Payroll
- Industry
- Employees’ type of work
- Claims history
The National Council on Compensation Insurance assigns classification codes based on the type of job workers do. If your business has a history of claims, this could increase your cost for coverage.
You can use this formula to estimate your workers’ comp insurance cost:
Who Is Covered by Workers' Compensation?
Several factors, like specific roles and the size of your business, can help determine which employees need workers’ compensation coverage. The requirements for workers’ comp coverage will vary state by state, but most require workers’ compensation insurance for full-time employees. To learn more about what types of employees are covered, you can reach out to one of our specialists at 877-737-2593.
Does Workers' Compensation Cover People Who Are Self-Employed?
If you’re self-employed, or a sole proprietor, your state laws may not require you to buy workers’ compensation insurance for your business. Workers’ comp coverage could still be helpful to have because your usual health insurance may not cover medical costs associated with a work-related injury. Coverage requirements will vary depending on the state you’re located in, so be sure to check with your local laws to find out what you’ll need.
Are Contractors Covered by Workers' Compensation?
Workers’ compensation is typically used for employer-to-employee relationships, but it can also apply to independent contractors too. If you work as a general contractor or a subcontractor, you may have to buy workers’ comp insurance if the contract you signed requires it. If you own a small business that hires contractors, keep in mind that any employee who accepts workers’ comp benefits loses the ability to sue your business for damages.
Three Big Benefits of Payroll Billing
Less hassle, more help. We know what small business owners are looking for – and we’re delivering it.
Blues City Deli – Vince Valenza
Vince Valenza, owner of Blues City Deli in St. Louis, talks about the importance of having workers’ comp coverage.
Your State’s Workers’ Comp Laws
Workers’ compensation laws vary by state. Select a state using the map or dropdown menu and learn about its workers’ compensation system. Or browse all states workers’ comp insurance coverages.
Need Workers’ Comp Insurance?
You try to run your business as safely as possible, but workplace accidents and employee sickness on the job happens often. We’re here to help your employees through their injuries and get them back to work faster.
What Our Workers’ Compensation Customers Are Saying:
“The Hartford's portal to upload and complete the information requested for Workers’ Compensation is very user friendly and easy to follow.”
Nila M.
“The Hartford is quick to respond to needs that our company has and while we have never had a workers’ comp claim or general liability claim I have full confidence that our benefits would be honored in an expedited manner.”
Leslie D.
“The Hartford finally made workers' comp audits easy. I remember when the process took days, involved faxes, and torpedoed my productivity while amping up my stress. It's still not fun, but it only takes a single-digit number of minutes.”
Andrew D.
“I have always had The Hartford Insurance since opening my business in 2015 and have never had any issues. I would highly recommend The Hartford to any new prospective business owners.”
Sherri H.
More Answers to Frequently Asked Workers' Comp Insurance Questions
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Other Business Coverages
We offer insurance coverages for companies of all sizes – large and small.
Last Updated: February 5, 2024
1,2,3,4 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
** "World's Most Ethical Companies" and "Ethisphere" names are registered trademarks of Ethisphere LLC.
*** This is a simplified calculation for educational purposes only. Actual premium calculations can be more complex. Experience mods are subject to state requirements and do not apply to every policy.
Additional disclosures below.