Workers' compensation, also called "workers' comp," is a government-mandated program that helps workers who get hurt or sick on the job or because of the job.
It's an insurance program for workers who get hurt or sick on the job. Workers who get hurt or sick on the job get cash benefits, health care benefits, or both.
The different states mainly take care of workers' compensation from states. From state to state, the required benefits are very different.
Only in Texas are employers not required to have workers' compensation insurance.
Commercial insurers fund most workers' compensation schemes through premiums from each employer. The Workers' Compensation Board is a governmental entity that oversees the program in each state and intervenes when disputes arise.
When an employee gets hurt or sick "in the course and scope" of their job, workers' compensation pays for their medical bills, lost wages, and rehabilitation costs. It also gives money to the families of workers who die on the job.
Some workers' compensation benefits may cover a portion of the employee's lost wages while they can't work. There may also be reimbursement for medical services and occupational therapy as part of the benefits.
There are federal workers' compensation programs for federal employees, people who work on the water or in ports, and people who work in the energy industry.
The Black Lung Program is another federal program that helps coal miners and their families get benefits if they die or can't work.
Nearly all employers are required to have insurance to pay for
The employer pays for workers' compensation insurance. As for Social Security benefits, there is no deduction from pay. By law, the employer must pay workers' compensation benefits as set by the laws of each state.
The cost of workers' comp insurance and the benefits required by law varies from state to state. There are also different rates for employees with low-risk jobs and those with high-risk jobs.
The insurance costs are based on how much the company pays its employees.
In California, workers' compensation costs an average of 40 cents per $100 paid to low-risk workers and $33.57 per $100 paid to high-risk workers.
In Florida, low-risk jobs pay an average of 26 cents per $100, while high-risk jobs pay an average of $19.40.
In New York, low-risk jobs pay an average of 7 cents per $100, while high-risk jobs pay an average of $29.93 per $100.
How much you pay for workers' compensation insurance depends on a few simple things:
Some jobs have more danger than others. The National Council on Compensation Insurance (NCCI) came up with a way to classify businesses and determine a rate based on an employee's risk.
Different states have different rates.
Rates tend to be higher for riskier jobs. For instance, an electrician's rate might be higher than an accountant's because electricians are more likely to get hurt on the job.
Your annual pay is used to determine how much your workers' comp insurance will cost you each year. When you get your quote, be ready to give this information.
Has your business dealt with workers' comp claims in the past few years? If that's the case, your workers' comp cost could increase. Your insurance company usually looks at the claims you've made in the past and bases your rate on how many and how bad they were.
Workers' compensation laws differ in each state, so rates will vary depending on where you work. Most of the time, places with more danger have higher premiums.
Every state (except Texas) has laws requiring employers to cover at least some workers with workers' compensation. Since the states make the rules, there are many ways to get around them. Contractors and freelancers are only sometimes covered, and many states leave out specific jobs from the requirement or limit the benefits in some other way.
Most states have websites to help you determine if workers' compensation insurance covers you.
Access your digital insurance card through the app. You no longer need to carry your physical insurance card with you.
Receive reminders before your renewal. Way.com will also send new quotes from up to 45 insurance companies with your renewal reminder.
Keep everyone on your policy up to date by sharing your insurance information.
Make changes to your policy right from the app (coming soon) and ask for expert advice.
For the best user experience, please download our Way app.
or
Free quotes from 150+ carriers in seconds