Workers' Compensation Insurance
Required by law in nearly every state — and your shield against employee injury lawsuits.
What is workers' comp insurance?
Workers' compensation covers your employees when they're injured or become ill because of their job: medical treatment, a portion of lost wages, rehabilitation, and disability benefits. In exchange, it serves as the 'exclusive remedy' — employees who accept workers' comp benefits generally cannot sue you over the injury. That trade protects both sides.
Nearly every state requires workers' comp once you hire your first employee (thresholds vary), and penalties for going without it are severe — fines, stop-work orders, personal liability for injury costs, and in some states criminal charges. Premiums are based on payroll and job classification codes, which means misclassified employees quietly inflate your premium. Reviewing class codes is one of the first things we do for every workers' comp client.
What it covers
- Medical treatment for work-related injuries and illnesses — no deductible or copay for the employee
- Partial wage replacement (typically about two-thirds) while an injured employee can't work
- Rehabilitation, physical therapy, and retraining when needed
- Permanent disability benefits for lasting impairments
- Death benefits and funeral costs for fatal workplace accidents
- Employer's liability — defense against injury-related suits that fall outside the comp system
What it doesn't cover
- Injuries from intoxication, fights the employee started, or off-duty activities
- Independent contractors (but misclassification is heavily audited — see FAQs)
- Wage replacement at 100% — benefits are partial by design
- OSHA fines and penalties
Coverage components explained
1Part One — Statutory Benefits
Pays whatever your state's workers' comp law requires — medical, wage replacement, disability, and death benefits. There's no dollar limit; the statute defines the obligation.
2Part Two — Employer's Liability
Covers lawsuits related to workplace injuries that fall outside the statutory system, such as third-party-over actions and consortium claims. Standard limits are 100/500/100; contracts often require $1M, achieved with an inexpensive increased-limits endorsement.
3Class Codes & Payroll
Your premium = payroll × rate per $100, by job classification. A clerical employee misclassified as field labor can multiply your cost. We audit classifications on every new policy and at renewal.
4Experience Modifier (E-Mod)
Once large enough, your business gets an experience modifier comparing your claims history to your industry. Below 1.0 earns a discount; above 1.0 is a surcharge — and many project owners won't hire contractors with a mod above 1.0. We help you manage it with claims practices and return-to-work programs.
5Premium Audit
Workers' comp premiums are estimates trued-up by an annual audit of actual payroll. We prepare you for audits so there are no surprise bills — and we contest audits that get classifications wrong.
When you need workers' comp coverage
- You have employees — most states require coverage at one employee; some construction trades at zero
- You use subcontractors — uninsured subs' payroll gets charged to YOUR policy at audit
- A client contract requires a workers' comp certificate before you can start work
- You're an officer/owner deciding whether to include or exclude yourself (the right answer depends on your health coverage and state rules)
- Your e-mod is above 1.0 and costing you money or contracts
Frequently asked questions
I only have one or two employees. Do I really need workers' comp?
In most states, yes — many require it from the first employee, and several construction trades require it even for sole proprietors. Beyond legality, a single serious injury can cost six figures in medical bills and lost wages that you'd otherwise owe personally. We'll confirm your state's exact threshold.
Do I need to cover independent contractors?
Genuine independent contractors aren't covered — but states and carriers scrutinize classification hard. If a 'contractor' works under your direction with your tools on your schedule, they're likely an employee for comp purposes. And at audit, any uninsured subcontractor's payroll is added to your premium. Always collect certificates of insurance from subs.
How are workers' comp premiums calculated?
Rate per $100 of payroll, set by job classification code, multiplied by your experience modifier. Three levers reduce cost: correct classifications, accurate payroll estimates, and a clean claims history supported by safety and return-to-work programs. We work all three.
What should I do when an employee is injured?
Get them medical care immediately, then report the claim promptly — late reporting is the single biggest driver of claim cost inflation. We give every client a one-page injury-response procedure and help you set up light-duty return-to-work options that keep claims small and your e-mod clean.
Can the owner be excluded from coverage?
Most states allow officers/owners to exclude themselves to save premium. Whether you should depends on your health insurance (many health plans exclude work injuries) and contract requirements. We'll walk through it — the cheap choice is sometimes the expensive one.
Let's find the right workers' comp coverage for you
Answer a few questions and a licensed advisor will compare quotes across our carrier lineup — usually back to you within one business day.