Workers' Compensation insurance is business insurance that provides medical and disability coverage for employees who sustain job-related injuries. At the very minimum, these Workers' Compensation insurance policies will cover an employee's medical expenses and reimburse him or her for some percentage of lost wages. Most companies are required by state law to carry Workers' Compensation insurance. Some states have developed state funds, or pools, for Workers' Compensation insurance, but in most states, businesses must find a private carrier for this type of business insurance policy. You’ll get different a workers' compensation insurance quote from different companies.
Because it is mandatory for most companies, some small business owners think of Workers' Compensation insurance as a burden, an expense, and a commodity product, providing only a basic level of benefits to employees. However, if you get a good workers' compensation insurance quote, this burden will be significantly lessened. There are differences in Workers' Compensation policies, and some of the most significant differences show up in what's called the Employers' Liability coverage, or "Part Two" coverage.
Employers' Liability insurance protects companies against the costs of defending employment-related claims brought by employees for work-related injuries or illness. The Employers' Liability coverage is usually one portion of a standard Workers' Compensation policy. But while standard workers' compensation benefits are fixed by each state, a business owner can usually select the amount of Employers' Liability coverage for his or her company while shopping around for a workers' compensation insurance quote.
Other options in Workers' Compensation insurance include provisions that cover employees injured in states other than those where the business normally operates, coverage of different types of illnesses and injuries (often dependent on the state where your business is located), coverage of funeral expenses and financial support to dependents, and the percentage of lost wages reimbursed. Even for small business owners, relatively minor differences between policies can make a big difference in insurance premiums.