When you’re thinking about starting a company, there’s probably a checklist of items you’re ticking off one by one: create a legal entity, establish a pricing structure, and (hopefully) research workers' compensation insurance. If you’re wondering, "What is workers' compensation insurance?" this article is for you.

Workers' compensation insurance is a type of benefit that provides disability or medical benefits to any employee that has suffered a work-related illness or injury.. It is a no-fault insurance system, meaning that workers can receive compensation, but will give up the right to sue their employer for any additional damages.

Let’s explore more of the key facts about workers’ compensation insurance below.

Examples of When You'll Need Workers' Compensation Coverage

As you can imagine, there are a variety of situations where you can benefit from workers' compensation coverage. If your employees suffer any of the following scenarios, workers' compensation insurance can significantly help them in a time of need. Here are a few very common scenarios where you'll need insurance for workers' compensation claims:

  • Repetitive Workplace Injury
    Some work injuries result from repetition and wear and tear on the body. Carpal tunnel, for example, is a work-related injury that can take months or even years to develop. Heavy keyboard users and assembly line workers suffering from carpal tunnel can receive assistance with treatment costs and ongoing medical care bills with the help of workers' compensation coverage.

  • Disability
    Unfortunately, some injuries can temporarily or permanently disable employees. When this happens, workers' compensation coverage provides disabled employees the benefits they need to pay any medical bills and replace a portion of their missed wages. For example, a worker who injures their back while at work and suffers permanent disability will be able to qualify for treatment costs and supplemental wage support.

  • Illness
    Unsafe working conditions can sometimes expose workers to allergens, pollutants, or chemicals that can make them ill. Toxic chemicals such as ammonia, lead, and mercury can cause serious bodily harm, and workers' compensation coverage would cover any related injury.

  • Ongoing Care
    Workers' compensation insurance covers ongoing care if work-related injuries or illnesses require more than one treatment. For example, workers' compensation can cover physical therapy if a worker experiences an ankle sprain while at work.

  • Funeral Costs
    In rare cases, workers can lose their lives due to work accidents. If this happens, workers' compensation coverage provides monetary compensation for funeral costs and even offers death benefits for their beneficiaries.

  • Missed Wages
    Should an employee need to take time off to recover from a work-related illness resulting in lost wages, workers' compensation insurance can replace some of this income. For example, if a worker is burned and is unable to work for a few weeks, the worker will still receive compensation.

  • Medical Expenses
    Workers needing medical attention because of an injury or illness can have their medical bills covered. Surgeries, prescriptions, and emergency room visits are just a few examples of what workers' compensation insurance covers.

State Requirements & Other Regulations You Need to Know About

Because workers' compensation coverage is regulated on a state level, each state has its own rules and requirements for coverage. Generally speaking, nearly every state requires employers to carry workers' compensation insurance; however, the laws will vary by state depending on the location of the business.

States also regulate who offers workers' compensation coverage, from the state to state-run agencies and private insurance companies. WCF Insurance provides workers' compensation insurance in California, Utah, Idaho, Arizona, Nevada, and Colorado. You can find more information about our coverage options by clicking the link for each state.

How to Find a Workers' Comp Insurance Company

The search for workers' compensation insurance can be overwhelming. However, many companies have made the process easy by allowing you to receive quotes and sign up online. Insurance brokers can answer all your questions and help you pick the right insurance policy for your company within minutes.

WCF: Helping You Save Money & Stay Prepared

WCF Insurance offers a full team of insurance agents, experienced adjusters, and sophisticated systems with preferred provider networks. When you work with WCF Insurance, you'll find the right agent that can not only save you time and money; they'll help you stay prepared for anything your company may face. With more than 100 years of extensive workers' compensation experience, knowledge, and resources, we are the insurance company you can trust. Receive an easy, fast, and accurate workers' compensation insurance quote from us today.

WCF Insurance services and coverages may not be available in every state and are subject to underwriting qualification criteria, policy terms, and state law. WCF Mutual, WCF National, and WCF Select Insurance Companies. wcf.com/about-us