You may ask what is workers compensation insurance? Workers compensation is an insurance system, mandatory in most states for employers to be licensed and provide service. It serves two basic purposes, to protect employees who have been injured on the job and to protect employers from litigation. Workers Compensation Insurance is sometimes called Workers Comp, Workmans Comp and Workers Liability Insurance. It can be purchased through an insurance company with the help of an agent or broker. Some states also offer a State Compensation Insurance Fund, which employers are able to pay to be a part of instead of purchasing coverage from the private insurance marketplace.

Buying Workers Compensation Insurance pays for an injured employee’s medical bills and lost wages. An employee will only be paid a portion of lost wages, usually about two-thirds of his/her salary. Most employees who become ill or are injured because of an accident on the job have an absolute right to medical care for the injury and the right to receive compensation from the employer for these costs. Without insurance, an employee can file a lawsuit against the employer to reclaim these damages. In most cases, employees covered by Workers Compensation insurance forfeit their right to file a lawsuit against the employer. Being covered by this insurance system ensures that the employee gets the medical attention that they need and that the employer is financially protected.

A few states have “pools” of insurance that are available for you to purchase, but in most states, companies must find private workers’ compensation policies. Only 4 states rely on an entirely state-run program: North Dakota, Ohio, Washington, and Wyoming. California has the largest State Compensation Insurance Fund, which makes sure that all employers can be covered with Workers Compensation Insurance even if they can not find coverage in the private market. The State Fund does not offer as high a level of protection as can be purchased through the private insurance market, but does help employers who are get covered. Business owners who are having trouble getting coverage can use an PEO/Employee Leasing solution in order to become eligible for group discounts and stay out of the state fund risk pool.

Business owners who are looking to buy Workers Compensation Insurance should contact an agency and speak with a broker about their needs. Buying Workers Comp Insurance is one of the most important decisions you will make as a business owner. It protects your employees and your business. Without it a single accident on the job could result in bankruptcy. Your financial success means everything to you. It is also important to us. helps business owners find affordable Workers Comp Insurance by shopping for a policy from several top insurers not just a single provider. Contact us to request a quote. We help business owners in 46 states including Florida, Texas, Arizona and Louisiana.

* The above terms and opinions are to be used for descriptive and reference purposes only. Please review your individual policy for full definitions, exclusions and endorsements. Should you have any questions, please contact your Broker or Agent.