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8 months ago · by · 0 comments

Where do you purchase workers’ comp insurance?

Do you wonder where to get workers’ compensation insurance? Workers’ compensation insurance is a necessary form of business insurance. This form of business coverage protects a business from getting sued and covers employees that suffer work-related injury or illness.  

Workers’ compensation insurance can be purchased online or through an insurance broker or agent. Before buying a workers’ compensation policy, you must understand how does workers’ compensation protects your business. Workers’ compensation law is different in every state and ways to purchase a policy.

Ways to purchase worker’s compensation insurance

Private workers’ compensation insurance companies 

These companies offer coverage mandated by the state; however, private companies can set their pricing and choose to accept or deny customers. Purchasing a workers’ comp policy in private companies has more chances for better rates compared to a state offering. 

State-funded workers’ compensation insurance

This workers’ compensation policy provider is an option in an instance private companies reject your application. State-funded programs help to ensure workers are getting the protection they need, no matter what type of business the employer sustains.

How does workers’ compensation work? 

In getting workers’ compensation insurance, you must understand how this policy can protect your business mostly for first-time seekers. Some business owners think that workers’ comp is the same as liability insurance, but no. Workers’ compensation is a type of insurance that is required for business owners to carry in most states. This insurance policy protects a business for getting sued by their employees that suffer work-related injuries. Workers’ comp policy provides benefits for employees such as medical expenses, lost wages, rehabilitation expenses. These benefits prevent injured employee to sue their employers. This type of insurance policy will provide benefits no matter who is at- fault.

Workers’ Compensation Coverage

Workers’ comp policy will cover the cost of work-related injuries and illness. 

Medical Expenses

In the event of an accident at a workplace, workers’ compensation will cover the expenses for immediate care like an ambulance ride. This policy includes surgeries, medications, hospital stays, and other medical bills related to the injury. Workers’ comp also includes hospital visits or ongoing treatment and physical rehabilitation. 

Loss Wages 

In an instance that an employee who suffers an injury is unable to return to his work due to the injury, workers comp typically cover lost wages while the injured employee is recovering. An adjuster will calculate the average weekly salary to determine how much is the cost they will provide to the employee. 

Lawsuits 

Workers’ compensation policy generally covers employers against lawsuits claiming the business owner’s negligence injured the worker. It covers;

  • Court costs
  • Attorney’s fees 
  • Settlements or Judgements

Death Benefits 

In an instance, an employee is killed in a work accident, the dependants such as the spouse or children will receive a particular benefit from workers’ comp policy.

What is not covered by your workers’ compensation? 

Workers’ comp protects your business and employees in a covered loss—the same thing to other insurance policies it contains exclusions that employers must understand in filing a claim. For example, an employee got into an accident and injured of being intoxicated, and injuries got into a fight with another employee.

What is the employer’s liability insurance? 

Employer’s liability is a section in which workers’ comp protects the employer against lawsuits related to an injury, such as claims in which the accident is the employer’s negligence. 

Workers’ comp would include the employer’s liability unless your workers’ comp was purchased from a monopolistic state fund. However, you can add this as an endorsement from a private insurance provider.

Can you get a workers’ compensation directly through an agent or broker? 

Not all insurance providers offer workers’ compensation policy straight to employers. In fact, most providers only offer it through agents. Purchasing a workers’ compensation to an agent or broker may help you better understand the coverages you may need for your business. However, if you decide to look online, get a quote today to compare rates. Getting a free quote online is one of the best ways to find a better policy, and you can choose for better rates and offers that can help to protect your business.

Is it better to purchase a Workers’ comp policy to  Agent than a Broker? 

Agent and broker are both selling insurance, and the difference is an agent offer insurance policy from the insurance providers they work for. On the other hand, a broker will represent you as the buyer to get insurance quotes from different insurance providers on your behalf, they will get the coverage and choose the limits for you and send it to the insurers to find the best policy for your business needs.

Is the classification of worker matters in buying workers’ comp? 

Workers’ compensation costs will depend on the type of work done by your employees. In fact, as an employer, you must ensure that all your employees are classified correctly to avoid penalties and lawsuits.

What are workers’ compensation class codes? 

Workers’ comp class codes are three to 4 digit numerical codes given to more than 500 business and job types. The codes represent small businesses whose employees could be at risk of injuries or illness while performing their jobs. Workers’ comp providers use the codes to specify how risky business to insure and determine how much the charge will be for your insurance.

Do class codes need to be accurate? 

Accurate class codes will prevent business owners from overpaying their workers’ compensation policy or receiving a penalty for underreporting your risk. In the event, the insurance provider checks your account and determine that you used different codes than you should have; it might bill you for an additional premium. Besides, if you made several mistakes in your class codes, the insurance provider may cancel your policy. 

How does class codes relate to insurance premiums? 

The National Council on Compensation Insurance (NCCI) gathers information on work-related injuries or illness for each of its class codes.  It can be a base for claim rates for each type of company and specific jobs. Your company rate may go higher or lower depends if you have more or fewer claims than the NCCI base rate.

How to file a workers’ compensation insurance claim? 

In the event one of your employees suffers an injury while conducting business operation you must; 

Provide the appropriate paperwork and guidance to your employee

  • File the claim to your insurance provider
  • Follow your state law for reporting work injuries 
  • Make sure to meet the deadlines in providing documents in filing a claim

In workers’ compensation, there is a specific time frame that the injured employee must report the accident, which varies depending on your state. Employers must provide the appropriate paperwork to their employees, including claims form, and submit directly to the insurance provider. Some states, it essential to report accidents to the state’s workers’ comp board. The injured employee also needs medical treatment, given the approved doctor of the board.

Additional Commercial Insurance Coverage 

There are numbers of commercial insurance coverage that can help to protect your business in certain losses that may not be covered by workers’ compensation insurance. It’s essential to understand the different forms of commercial insurance to know what type of insurance policy suits your business needs. 


Business Owner’s Policy 

Business owner’s policy (BOP) is a form of insurance policy that contains two coverage combine in one insurance policy, such as the general liability and commercial property. BOP policy typically protects business owners against property damage, a covered peril, and liability. 

General Liability 

General liability protects the employer and the business itself against general losses involving bodily injury and property damage. Most business requires general liability coverage. This coverage includes the landlord’s property in the event the business owner is legally liable. 

Commercial Property 

Commercial property is a form of insurance that protects a business property against perils such as fire, theft, and other natural disasters (Except. Earthquake and Floods). This business insurance coverage includes equipment against the risk of catastrophe. 

Professional Liability (Errors and Omissions)

Professional liability or also called errors and omissions, is a form of insurance that protects companies, their employees against claims of negligent actions. Errors and omissions cover court costs and any settlements up to the policy limit. This type of insurance is usually for a professional that gives advice, such as a financial advisor, lawyer, and insurance agent. 

Data Breach 

A data breach insurance covers the costs of a data security breach in such things as public relations, legal fees, and liability.  Data breach covers the cost of restoring data that is lost or damaged by a virus, hacker attack.

These are just common insurance services. Talk to an insurance agent or a broker to understand further about commercial coverages that may suit to your business needs.

How to get Workers’ Comp Insurance policy? 

Different state law has different requirements for workers’ compensation, purchasing, and choosing the right coverage for your business may be intense. It is essential that getting insurance for your business with trusted insurance providers would be easier for you to determine the coverage that your business needs.

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