Workers Compensation Insurance

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What is Workers Compensation Insurance?

Workers' compensation insurance provides coverage for injuries sustained during employment, including medical care expenses, lost wages, and rehabilitation. It also offers state-mandated benefits to the families of employees who die due to work-related accidents.

Basic Functioning of Workers' Compensation Insurance

Worker's compensation insurance, also known as workman's comp or work comp, covers injuries sustained during job duties. It obligates employers to pay for medical care and a portion of lost wages regardless of fault.

The rules for insurance are established by the statutes in each state therefor coverage can vary from state to state.  Each state's laws govern the following:

  • Amount of loss wage benefits owed to the entitled employee (and minimum and maximum loss wage amounts)
  • If exemptions are permitted for owners or officers
  • Level and cost of medical care to be delivered
  • When a workers compensation policy is statutorily required
  • If workers compensation insurance is provided by a state-run program or private insurers
  • How disputes are handled
  • If credits are given for workplace drug free or safety programs
  • If deductibles and coinsurance are permitted on policies
A construction worker helping an injured worker

Who needs Workers Compensation Insurance?

A business owner must get  Workers Compensation Insurance type of insurance if:

  • The company is about to hire their first employee
  • Company’s owners or officers want to be covered by compensation
  • If worker compensation is statutorily required in their state
  • The business is in a high-risk industry
  • Coverage is contractually required for a job or project

Workers Compensation Insurance Coverage offered

Medical Costs

Covers immediate and ongoing medical expenses, including surgeries, therapy, and prescriptions.

Lost Wages

Reimburses a percentage of lost wages if an employee is unable to work due to injury.

Ongoing Care

Provides ongoing care for permanent disabilities resulting from workplace injuries.

Death Benefits

Offers support payments to dependents of employees who die from workplace injuries.

Legal Costs

Covers legal expenses if an employee sues the company for injury.

Instances of Workers’ Compensation Insurance Claims

Following are some common instances of  Workers’ Compensation Insurance Claims:

Work Exertion

Injuries resulting from strenuous work, such as muscle tears, are covered.

Exposure to Harmful Environments

Injuries caused by exposure to hazardous substances or environments are compensated.

Slips and Falls

Accidents like slips and falls during work hours are covered.

How can we help you get workers’ compensation insurance?

Workers Compensation Classifications

Read up about the overview of workers’ compensation insurance on our website. Contact us by phone or email for more queries. We patch you up with a suitable insurance provider on our platform. We understand your needs as a business owner and provide you with a platform to browse from some of the best insurance deals.

What are workers’ compensation classification codes?

Class codes, also known as workers' compensation classification codes, categorize occupations for insurance premium determination.

How are workers’ comp class codes used?

Insurance providers use class codes to assess the risk of job-related injuries and determine premiums accordingly.

Employees in high-risk industries are charged higher rates. An office clerical worker (class code 8810) is less susceptible to injury than a roofer, (code 5403) on a 2 story home. It's less expensive for workers compensation to insure a clerical employee than a construction worker.

How are workers’ compensation premiums calculated?

Three primary variables are used in calculating the worker's compensation rate equation.

Workers’ compensation classification code

Indicates the type of work performed and its risk level.


The annual payroll by job duty determines the cost of coverage.

Experience modification factor

Reflects the company's history of workers' comp claims and safety record.

Frequently Asked Questions (FAQ) about Workers Compensation Insurance

1. How to choose a good workers' compensation insurance company?

To choose a good workers’ compensation insurance company, you should check their financial rating with company such as AM Best which provides a snapshot of the carriers rating, try to stay with an “A” rated carrier. You can also check with your state insurance commissioner’s site to make sure the insurance company is authorized to do business in your state. Aside from these factors, consider what is important to your company. Are you in a business that has a higher injury rate than most? If so, an insurance company’s loss prevention and risk management services available are worth checking into. Your agent can provide links to each carrier’s divisions so you can check out what they offer. Some insurers may offer free safety training or videos that you can show at a staff safety meeting. 

2. What are workers' compensation insurance requirements by state?

Each state has different workers’ compensation insurance requirements. To know more about it, check out your state on

3. Which type of workers' compensation claim is easy to process?

Medical-only type of claim that is the simplest to file and easiest to process.

4. How much is workers compensation insurance in Florida?

In Florida, rates are set per $100 of payroll, there are over 500 different job classifications with a specific rate set for each. The FL rates for a clerical employee in 2022 is $0.16 while a roofer’s rate is $11.41 per $100 of payroll. Payroll and loss experience are two of the main factors that determine your premium.

5. Is workers compensation insurance compulsory in the USA?

Workers' compensation insurance is required in nearly every state, requirements are different depending on the industry and the number of employees a business has. Workers’ compensation is governed by state law. There are some industries in which federal requirements and benefits come into play, these are railroad work, longshore and harbor workers, and work subject to the Jones Act (ocean going vessel workers), there may be more.

Click here for more Frequently Asked Questions on Workers' Compensation Insurance.

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