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Workers Compensation

What is work comp insurance? What is workers compensation?

Workers’ Compensation insurance, or work comp as it is often referred to, is coverage for an employee that has suffered an injury or an illness due to their job duties. Coverage pays for medical expenses as well as rehabilitation, and also replaces lost wages for employees hurt on the job. Most states have laws that require business owners to carry this coverage in order to do business. Coverage is afforded in exchange for the employee giving up the right to sue their employer for negligence.

The cost of workers’ compensation varies from one insurance company to the next, and rates vary greatly from one type of business to the next. Each different industry or job description is assigned a class code, based upon the severity and frequency of injury for that profession. Rates are then determined by taking the gross payroll of an employer for a particular type of job duty and multiplying that figure by the class code for that type of business. A roofer for example can expect to pay higher premiums than a legal office, due to the nature of their daily job duties.

In most states you can purchase work comp coverage from a private insurer. In Kentucky you can acquire coverage in this manner. In Ohio coverage can be obtained from the state.
Workers’ compensation for some types of businesses can be one of their largest expenses. You can help to keep your costs down by knowing your options, and by consulting with an independent insurance agent. Make the investment needed to minimize workplace accidents. Like other types of coverage, the less losses or claims that you have, the lower your costs are going to be.

As always, be sure to consult with your local professional independent insurance agent, like those here at IndePro.