• Tamir Zuckerman

What is workers' compensation insurance?

We've all heard of it, we all know it's there, but what exactly is Workers Compensation Insurance and what does it cover?


Let's start with some definitions, Workers' compensation is an insurance coverage providing replacement of wages and medical benefits/expenses to employees injured in the course of employment (usually in their workplace) in exchange for the employee's right to sue their employer for the same damages (negligent).

It provides medical expenses, rehabilitation costs, death benefits to families of employees who are killed on the job, and lost wages to employees who are become ill, died or injured “in the course and scope” of their job. 


Photo by Nuno Silva on Unsplash

Where do you work?

All states require employers to buy Workers' Comp Insurance. (The exception of Texas)

Workers’ Comp requirements vary by state. And, the state is the body that regulates the requirements. They determine premiums, amounts and other factors.

The main reason that states determine their own Workers’ Comp rules, is because of the differences in state economies and risk profiles.

What are the main exclusions in Workers' Compensation Insurance?

Please note that these can change from state to state

  • Emotional injuries that are not accompanied by physical trauma

  • Injuries sustained in an altercation that the injured employee started

  • Injuries an employee sustained intentionally

  • Injuries sustained while the employee was intoxicated

How to Calculate Workers’ Compensation?


Photo by Sandro Cenni on Unsplash

Workers' Compensation Insurance is unlike any other type of small business insurance in that it is regulated by the states. In fact, 49 states require all businesses with employees to carry Workers' Compensation Insurance (the exception is Texas). While this means that having Workers' Comp is a unifying thread for businesses with employees, it also means the cost of this coverage varies significantly from one state to another.

Why? It's like anything else regulated by the states: when you have 50 different governing bodies solving a problem, they'll likely solve it in 50 different ways. For example: in Colorado, the rules explicitly state that you can exempt yourself from coverage if you're a volunteer for a ski-area operator. In Florida, rules note that construction professionals are required to carry coverage for themselves, even if they have no employees.


How do I get Workers’ Compensation Insurance?

For more information please call us at 620-757-0785, or get an instant online quote Here.

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