What is workers’ compensation?
A workers' compensation insurance policy provides benefits to your employees for work-related injuries and illnesses. It may also pay for medical treatment, temporary and permanent disability and death benefits. Requirements for workers’ comp vary by state.
Why consider adding workers’ compensation insurance coverage?
Nearly every state requires businesses to carry workers’ compensation insurance. But even if your state doesn’t have such a requirement, carrying workers’ compensation insurance is still a smart idea that could help protect your business if your employee suffers a work-related injury or illness.
Workers’ compensation resources to help you
Claim kit information
Get help with claims and access claim kits with state-specific information, posters and bulletins to display at your business.
Loss control services & resources
Many workers’ compensation losses may be preventable. Check out free resources to help you identify and mitigate some common causes of business and workers’ compensation losses.
Audit awareness
Workers’ compensation is an auditable policy, so the initial premium is based on your estimated payroll for the upcoming policy period.
What’s the cost of workers’ compensation insurance?
No business is quite like yours, so what you’ll pay for workers’ compensation insurance will be specific to your company’s unique situation. Your premium may be based on your payroll and industry. Reach out to your State Farm agent about your business’ needs.
What does workers’ compensation insurance cover?
This insurance helps provide a wide variety of coverages for small business owners.
Medical benefits
May pay the medical treatment for your employee’s work-related injury or illness, including initial treatment, as well as any necessary related treatment expenses
Indemnity benefits
Partially replaces income lost by your injured workers. Temporary and permanent disability benefits are available. Usually, a certain amount of time after the injury must elapse before benefits are paid
Rehabilitation benefits
These benefits typically cover the cost of rehabilitation for your employees, as well as the expenses associated with the rehabilitation, such as lodging or travel
Death and survivor benefits
These benefits usually include payments for funeral expenses and a weekly income benefit paid to your employees’ dependents. Typically, payments to children stop at age 18 and to spouses if they remarry
Employers liability
This coverage helps protect you from legal liability arising out of employees’ work-related injuries that aren’t covered under medical, indemnity, rehabilitation, and death and survivor benefits. Also, it helps protect you against third-party, common-law claims, such as those occurring within the construction industry
Coverage in action
One of your employees injured their back on the job. Their doctor is recommending physical therapy. Offering rehabilitation benefits may help your employee get the treatment they need.
Frequently asked questions about workers’ compensation insurance
Most states require workers’ comp insurance. Requirements vary by state, but even if your state doesn’t have such a requirement, carrying workers’ compensation insurance may still be a smart ideas.
Workers' compensation is generally associated with the relationship between employers and employees; however, it can also extend to independent contractors. If you operate as a general contractor or a subcontractor, you might need to obtain workers' comp insurance if your contract stipulates it. It is important for business owners to understand their state’s laws regarding employee-employer relationships and contractors.
A few states require that you purchase insurance through a state-run fund. For most states, however, you can purchase insurance through an insurance company. A State Farm agent can walk you through the process that helps fits your circumstances. Find an agent near you.
An employee that sustains a work-related injury or illness may be eligible for benefits under their employer’s workers’ compensation policy.
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Prices are based on rating plans that may vary by state. Coverage options are selected by the customer, and availability and eligibility may vary.
This is only a general description of coverages of the available types of business insurance and is not a statement of contract. Details of coverage, limits, or services may not be available for all business and vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements. Contact a State Farm agent for more information and a customized quote.
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