What is workers’ compensation insurance?

Worker’s compensation insurance, also called workers’ comp insurance, helps cover medical expenses and lost wages for small business owners if an employee is injured or becomes sick. This coverage can include rehabilitation services and death benefits too. Workers’ compensation insurance is also called workman’s compensation or workman’s comp. The GEICO Insurance Agency, LLC has teamed up with companies to help your business get the coverage you need. Get your workers’ compensation quote.

Workers’ Compensation Insurance–Benefits For Employees

Mandatory workers’ compensation insurance helps you and your employees. For employees that are injured or become ill because of work related events it can help cover:

  • Medical bills
  • A portion of lost wages
  • Funeral expenses if a work-related event results in a death

Workers’ Comp-Benefits For Your Business

Accidents happen, but workers’ comp helps give your business a safety net. In addition to helping cover medical bills and lost wages, the coverage may help with:

  • Vocational rehabilitation services to help get your employee back to work
  • Help with legal costs in the event of a lawsuit

Is workers’ comp insurance necessary?

Most states require businesses with 1 or more employees to have workers’ compensation insurance. As a business owner, you want to protect your business, yourself, and your employees from unforeseen accidents and prevent business interruption.

What’s covered in a workers’ comp policy?

Coverage varies by state but we’ve listed some examples of things usually covered. For a complete list of what’s covered in your state, please see your policy contract.

What Worker’s Comp Covers

In general workers’ comp covers employees’, owners’, and officers’ injuries or illness caused by their job. Examples:

  • Lost Wages
  • Medical Expenses
  • Rehabilitation Expenses
  • Death Benefits

What is not covered by a workers’ compensation policy?

Some injuries usually aren’t covered by a workers’ comp policy. A few examples are:

  • Ones due to an employee being intoxicated or using illegal drugs
  • Injuries that occur while not on the job
  • If an employee’s conduct violates company policy

Why choose GEICO to help with workers’ compensation insurance?

Workers’ compensation insurance is required by the state, so most policies look similar. The GEICO Insurance Agency will help you get excellent coverage for your business in most states.

How much does workers’ comp cost?

We could help you save on your workers’ compensation insurance by teaming with companies that will work directly with you. Start a quote and see how much you could save!

Who needs workers’ comp?

Workers’ comp is required by most states. In a majority of states, if you have one employee you must have this insurance in order to avoid fines. For example, in California your fine can be up to $100,000.START QUOTE

Need to speak with us about a workers’ compensation quote?

You can reach a sales agent at (800) 841-1621

Workers’ Compensation Insurance: Get the answers you’re looking for.

  • How can I learn more about workers’ compensation insurance?
  • How can I manage my workers’ compensation policy?
  • Do you sell other business insurance products?
  • What type of insurance do construction contractors need?
  • Does workers’ compensation cover employees who contract COVID-19 (the coronavirus)?
  • What is the cost of workers’ comp based on?

Workers’ compensation insurance, commonly known as workers’ comp, is insurance that covers medical expenses and a portion of lost wages for employees who become injured or ill on the job. Coverage also includes employee rehabilitation and death benefits.

How does workers’ compensation insurance work?

Each state has its own unique set of workers’ compensation laws that employers must follow. These regulations help ensure that employers provide coverage for the cost of work-related injuries or occupational diseases, regardless of employee negligence.

An employee can only receive benefits if their injury or illness relates to their job duties or employment. Workers’ comp insurance could cover injuries caused by lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury due to fires or explosions.

If an employee isn’t acting within the scope of their employment and becomes injured, such as playing football with friends on a day off, workers’ compensation insurance won’t cover them.

Who needs workers’ compensation insurance?

Workers’ compensation insurance is required by law in almost every state. Some worker exemptions exist, so you’ll want to check with your state to find out if coverage is mandatory for your business.

Choosing to forgo workers’ comp coverage puts your business at high financial risk. Not only can you face a lawsuit for workplace injuries, but you’ll likely be fined for breaking the law.

Keep in mind, workers’ comp insurance protects not only your employees, but your small business too. For example, if your insurance is compliant with state law, an employee who receives benefits can’t sue you for their injuries or lost wages.

They can, however, sue you for things that aren’t covered under the workers’ comp portion of your policy. Employer’s liability insurance is also included in your policy to pay for court costs and legal fees if you’re involved in such a lawsuit.

How much does workers’ compensation insurance cost?

In 2020, the national average monthly cost for workers’ compensation insurance through the Progressive Advantage® Business Program was $86. Remember, this is only an average. Your rate will depend on specific qualities of your business including your state, payroll and claims history.

Discover how these and other factors influence your workers’ compensation cost. You may also start a quote online, or contact us directly to speak with an in-house agent who can help you find coverage.

How to get workers’ comp insurance through the Progressive Advantage® Business Program.

We’ve partnered with select insurers who offer workers’ comp insurance in the following states:

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • West Virginia
  • Wisconsin

If you need coverage in Ohio, North Dakota, Washington or Wyoming, you’ll need to contact your state to secure insurance. These states only allow businesses to get workers’ compensation insurance through them.

Common questions

What doesn’t workers’ compensation cover?

In addition to injuries that occur outside of work, injuries that occur intentionally, while commuting to and from work, or due to intoxication or substance abuse wouldn’t be covered by workers’ compensation.

Who is covered by workers’ compensation?

It varies based on where your business operates. For example, certain types of employees, such as seasonal workers, may not be covered by workers’ compensation in some states. Contact us at 1-888-806-9598 and we’ll help you answer any state-specific questions you have about your coverage.

Does a sole proprietor need workers’ compensation?

Not usually. While workers compensation laws vary from state-to-state, most states don’t require sole proprietors to carry workers’ comp.