Workers’ Compensation
Purpose of Workers’ Compensation Insurance
Protect your employees. Protect your business.
Workers’ Compensation Insurance is required for most businesses, although requirements vary by state. More importantly, it helps protect both your employees and your company when a work-related injury or illness occurs.
Having the right Workers’ Compensation coverage helps you:
- Meet state insurance requirements
- Protect your business from costly claims and lawsuits
- Support employees during recovery
- Reduce financial risk after workplace accidents
- Demonstrate your commitment to employee safety and well-being
We’ll Help You Find the Right Coverage
State Insurance Departments
Employers Guide to Workers’ Compensation Insurance
Workers' Compensation Benefits
No Fault Benefits for Employee Accidents
The no-fault nature of Workers’ Compensation claims benefits both employees and employers. In this system, injured workers receive medical care and wage replacement without needing to prove employer fault, ensuring swift access to support. For employers, it reduces the risk of costly lawsuits, fostering a more cooperative workplace. This streamlined process enhances workplace relations and promotes a culture of safety and support.
This system ensures that injured workers receive both comprehensive medical attention and financial support during their recovery, facilitating their return to work without the burden of medical expenses or lost wages.
Employer Liability
Employee Lawsuits
Protection beyond standard Workers’ Compensation benefits.
In some situations, an injured employee—or even their family members—may file a lawsuit seeking damages that aren’t covered by a Workers’ Compensation policy (pain & suffering).
Employer’s Liability Insurance helps protect your business from these additional legal and financial risks.
Third Party Lawsuits
If an employee is injured and a third party is deemed partly at fault, and the employee sues that third party, the third party could then sue the employer. Employer’s liability insurance can cover the employer in these complex legal situations.
What It May Help Cover
Employer’s Liability Insurance may provide coverage for:
- Employee lawsuits involving work-related injuries or illnesses
- Legal defense costs
- Court-awarded damages or settlements
- Certain claims filed by a spouse or family member, such as loss of consortium or loss of support*
Why It Matters
This additional layer of protection can help your business:
- Reduce the financial impact of employee-related lawsuits
- Fill coverage gaps not addressed by Workers’ Compensation
- Protect your company’s assets and financial stability
- Provide greater peace of mind as an employer
*Coverage varies by policy and state laws. Our Commercial Insurance Advisors can help you understand what protections are available for your business.
How Premiums are Calculated:
1. A primary factor is the rate determined by your business classification (based on the risk of the job duties). Insurance companies set different multipliers for different job classes. The multiplier is multiplied by your payroll amount to get a rate. Those with a lower multiplier, generally offer lower rates.
2. The premium paid at the start of the policy period is considered a “deposit.” This is based on an estimated payroll for the next 12 months. At renewal, the employer will be audited and billed or reimbursed for any difference based on actual payroll experience.
3. Additionally, Experience Modification or Merit Rating which can apply a discount or surcharge depending on loss history.
Do you have...
Different Job Duties for Different Employees – Out of State Operations – Work from Home Employees
Written Safety Procedures – Employees under 16 or over 60 – Physicals Required for Employment
Prior Claims – Subcontractors – Seasonal Employees – Employee Health Insurance or Retirement Plan
Please be sure to mention this to your HTA Advisor
Since experience rating influences the premiums you pay, there is an incentive for employers to develop loss prevention programs.
General look-back period is 3 years with no claims.
