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.
What Workers’ Compensation Covers
Workers’ Compensation Insurance can help pay for:
- Medical expenses related to workplace injuries or illnesses
- Lost wages while an employee recovers
- Rehabilitation and recovery services
- Disability benefits when applicable
- Death benefits for eligible dependents
Why Your Business Needs It
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
Every business has unique risks. Our Commercial Insurance Advisors will help you understand your state’s requirements, evaluate your exposures, and find Workers’ Compensation coverage that fits your business and your budget.
State Insurance Departments
Employers Guide to Workers’ Compensation Insurance
Protecting You
Workers’ Compensation Benefits
Workers’ Compensation benefits cover necessary medical care for employees with work-related injuries or illnesses and provide wage replacement for time lost from work without a predefined limit. 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.
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.
Protecting Others
Employer’s Liability Insurance
Extra protection when Workers’ Compensation isn’t enough.
Employer’s Liability Insurance helps protect your business if an employee files a lawsuit over a work-related injury or illness that isn’t fully covered by your Workers’ Compensation policy.
What Employer’s Liability Insurance Helps Cover
This coverage may help pay for:
- Legal defense costs
- Court-awarded damages or settlements
- Claims related to workplace injuries not covered by Workers’ Compensation
- Additional financial protection for your business
Why It Matters
Employer’s Liability Insurance helps you:
- Protect your business from costly employee lawsuits
- Reduce unexpected legal and financial risks
- Fill coverage gaps beyond standard Workers’ Compensation benefits
- Gain greater peace of mind as an employer
Coverage Built for Your Business
Coverage limits can be customized based on your business, industry, and level of risk. Our Commercial Insurance Advisors can help you choose the right amount of protection for your needs.
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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.
Employer’s Liability Insurance helps protect your business from these additional legal and financial risks.
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.
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.
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.
