Work Comp Insurance: 101 Things You Need to Know

Work comp insurance, also known as workers' compensation insurance, is a type of insurance that provides benefits to employees who are injured or become ill due to their job. These benefits can include medical expenses, lost wages, and disability benefits.

Who Needs Work Comp Insurance?

All employers in the United States are required to have work comp insurance. This includes businesses of all sizes and types, from small businesses to large corporations.

What Are the Benefits of Work Comp Insurance?

Work comp insurance provides a number of benefits to both employees and employers.

Benefits For Employees

• Medical expenses: Work comp insurance covers the cost of all medical expenses related to a work-related injury or illness. This includes doctor's visits, hospital stays, surgery, and rehabilitation.
• Lost wages: Work comp insurance provides lost wages to employees who are unable to work due to a work-related injury or illness. These benefits are typically paid at a rate of two-thirds of the employee's average weekly wage.
• Disability benefits: Work comp insurance provides disability benefits to employees who are permanently disabled due to a work-related injury or illness. These benefits are typically paid at a rate of two-thirds of the employee's average weekly wage.

Benefits For Employers

• Protection from lawsuits: Work comp insurance protects employers from lawsuits by employees who are injured or become ill due to their job.
• Lower workers' compensation costs: Work comp insurance can help employers lower their workers' compensation costs by reducing the number of claims filed and the amount of benefits paid out.
• Improved employee morale: Work comp insurance can help improve employee morale by providing employees with peace of mind knowing that they are protected if they are injured or become ill due to their job.

How Much Does Work Comp Insurance Cost?

The cost of work comp insurance varies depending on a number of factors, including the size of the business, the type of industry, and the location of the business. The average cost of work comp insurance is $1.20 per $100 of payroll.

How to Get Work Comp Insurance

Employers can get work comp insurance through a variety of sources, including insurance brokers, insurance companies, and state-run insurance funds.

Important Things to Remember About Work Comp Insurance

• All employers in the United States are required to have work comp insurance.
• Work comp insurance provides benefits to employees who are injured or become ill due to their job.
• The cost of work comp insurance varies depending on a number of factors.
• Employers can get work comp insurance through a variety of sources.

If you have any questions about work comp insurance, be sure to contact your insurance agent or broker.
Additional Resources

• Workers' Compensation Insurance
• Work Comp Insurance: A Guide for Employers
• Workers' Compensation Insurance: A Guide for Employees