Worker's Compensation - A Short Explanation

Workers’ Compensation Insurance

Almost all employers in the United States are legally required to have a Worker's Compensation insurance policy. These policies will satisfy the employer’s obligation to pay certain employee expenses resulting from injuries and illnesses that occur on the job.

Workers’ Compensation systems are set up and administered on a state-by-state basis. The dual goals of these systems are to (1) ensure that employers provide appropriate payments (through their insurer) to eligible injured employees, and (2) eliminate the litigation that would otherwise take place between injured employees and their employers.

When an employee is injured on the job or suffers an illness because of work, Workers’ Compensation insurance may provide the employee with a range of benefits including medical care, physical rehabilitation, and/or wage replacement. If the employee dies from the injury or illness, the insurance may provide compensation for the surviving dependents of the deceased employee.

Because this area of insurance is highly regulated, businesses should consult with their relevant state agency to learn about the applicable Workers’ Compensation insurance requirements. Premiums for this type of insurance will vary depending on the type of business, the state laws, and the business’s history of Worker’s Compensation claims.

Our Agency works with a multitude of Worker's Compensation Insurance Carriers. To obtain a quote we will need the following informaton:

  • A copy of your most current Worker's Compensation Declaration Page(s) showing your policy number, dates of coverage, payroll classifications, and experience modification, if any.
  • A four (4) year copy of your Loss-Report or Loss History from all the insurance companies you have had coverage from in the past four years.
  • A list of all employees by classification, i.e., clerical, manager, maintenance, etc. and the annual payroll for each classification.