What Is Workers’ Comp Insurance?

Accidents and illnesses happen. Sometimes, they happen to employees while they’re on the job. Employers and employees alike can face financial risk in the wake of work-related injuries and illnesses, but workers’ compensation insurance offers financial protection and assistance to both parties.

Why Do Businesses Need Workers’ Comp Insurance?

Employers should always strive to foster a safe work environment that supports their employees’ comfort, health, and success. But there are some accidents and health risks that simply can’t be prevented, regardless of that caution. When these incidents strike, workers’ comp insurance shields employers from legal repercussions and protects employees from potentially disastrous wage losses and medical expenses.

But your licensed workers’ comp insurance provider should be able to offer you more than comprehensive protection. We make submitting claims easy and efficient.  Licensed nurse case practitioners take first notice of loss to help ensure your employees’ claims are triaged the most efficiently – driving better care and quicker return to work.

Is Workers’ Comp Insurance Legally Required?

While the laws vary between states, most states require all employers, including small business owners, to have workers’ compensation insurance. Workers’ comp insurance covers all employees, even in states where employers are not required to have workers’ comp insurance because most employers still choose to obtain it to protect their business. 

Workers’ Compensation benefits your employees as well, helping with necessities such as surgery, physical therapy and finding more suitable work post-injury. Workers’ comp insurance can offer a wide array of financial protections that mean the difference between dealing with a devastating, life-changing event and getting back on their feet. Even just knowing that protection is in place when they start a job can inform an employee’s decision to accept the job. 

What Types of Injuries are Covered? 

Once again, state law determines what types of injuries are covered, but there are general guidelines that can help you understand what typically qualifies for a workers’ comp claim. These include:

  • No intentional self-harm, harm that results from drug or alcohol use, or fighting. 
  • Must fall within the “course and scope” of employment. If you get into a fender bender on your way home from work after you’ve clocked out for the day, that’s unlikely to qualify.  
  • Long-term occupational injuries, including back strain from repetitive motion. When you think of work-related injuries, you probably think of one-time events — but damage can occur over a long period of time. As long as the injury or illness is clearly associated with the employee’s work responsibilities, it may be eligible. 

How Are Costs Determined, and How Do I Sign Up?

In addition to state laws that must be considered, your payroll determines your premium. The more people you employ who require coverage, the higher the risk and the higher the premium. The premium will also depend on the type of work your employees carry out because not all work environments are equal; a roofer faces more daily risk than an office worker, for example. We estimate your premium on payroll when you decide to sign up. But if your payroll changes, simply let us know and we’ll adjust your policy according to your needs. 

When you’re ready to act, we don’t waste time. We may be able to get you a quote within minutes, and we’ll work quickly to get you the coverage you need. Start your quote now.

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Learning Center Resources


  • Top Workers’ Comp Questions
  • Small Business Resources
  • Workplace Safety Tips