Coverage Guide
Workers' Compensation Insurance
Protect your team. It's the law in most states.
Workers' compensation insurance covers medical expenses, lost wages, and rehabilitation costs when an employee is injured or becomes ill because of their job. In most states, it's legally required as soon as you hire your first employee.
What It Covers.
Medical Expenses
The Risk
An employee is injured on the job — a fall from a ladder, a repetitive strain injury, or exposure to hazardous materials — and needs immediate medical treatment.
The Solution
Workers' comp pays for emergency care, surgery, physical therapy, prescriptions, and ongoing treatment related to the workplace injury.
Lost Wages
The Risk
An injured employee can't work for weeks or months while recovering. They still have rent, bills, and a family to support.
The Solution
Your policy replaces a portion of the employee's lost income during their recovery period.
Employer Liability
The Risk
An employee claims their injury was caused by unsafe working conditions and sues your business directly.
The Solution
The employer liability portion of workers' comp covers your legal defense and any damages if an employee sues beyond the standard benefits.
Who Needs This?
If you have employees, you almost certainly need workers' compensation. Most states require it by law, and going without it exposes you to severe penalties.
- Construction and trades
- Manufacturing and warehousing
- Restaurants and food service
- Any business with W-2 employees
What Happens Without It?
Scenario
A warehouse worker injures their back lifting heavy inventory. Medical bills total $85,000, and they can't work for three months.
Consequence
Without workers' comp, you're personally liable for every medical bill and lost wage claim. In most states, you also face fines up to $100,000 and potential criminal charges for operating without coverage.
Real-World Example.
Situation
A restaurant cook suffers a severe burn from a grease fire. They need skin grafts and six weeks of recovery time.
Outcome With Coverage
Workers' compensation covers the surgery, rehabilitation, and partial wage replacement — protecting both the employee and the restaurant from financial ruin.
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Related Coverages.
Often paired with Workers' Comp for comprehensive protection.