Overview
Workers' compensation pays for medical treatment and a portion of lost wages when an employee is injured or becomes ill because of their job. In exchange, employees generally give up the right to sue the employer for that injury.
Each state sets its own rules about who must carry it, how many employees trigger the requirement, and whether owners and officers can exclude themselves. Construction and trucking often have stricter rules than other industries.
What It Covers
Medical Care
Treatment, surgery, prescriptions and rehab for work-related injuries.
Lost Wages
A portion of income while the employee recovers.
Death Benefits
Benefits to dependents after a fatal workplace accident.
Employer's Liability
Protects the business against certain lawsuits tied to employee injuries.
Who Needs It
- Businesses with W-2 employees
- Trucking companies with company drivers
- Contractors and subcontractors
- Businesses whose contracts require proof of coverage
What Affects Your Price
- Payroll by job classification
- State
- Experience modification rate (mod)
- Claims history
- Safety programs
Roy's tip: Misclassifying employees as 1099 contractors doesn't eliminate workers' comp exposure. Auditors and courts look at how the work is actually controlled. When in doubt, ask us.
Frequently Asked Questions
What is a workers' comp audit?
Premium is estimated at the start of the policy based on projected payroll. After the policy ends, the carrier audits your actual payroll and adjusts the premium up or down.
Owner-operator vs. company driver: who needs comp?
Company drivers on W-2 generally need workers' comp. Leased 1099 owner-operators are often covered by occupational accident instead, depending on the lease and state law.