Does Your Business Need Workers’ Comp Insurance?

June 07, 2024 | Workers' Compensation

This article was originally published June 22, 2021

Does your business need workers’ comp insurance? If you have employees, you almost surely do. Technically called workers’ compensation insurance and sometimes referred to as workers’ comp or workman’s comp insurance, this coverage protects employees in the event of an injury or illness at work. The financial support it provides can be crucial as they strive to recover and return to work.

Architect meeting with general contractor

What is Workman’s Comp Insurance?

Workman’s comp insurance covers costs associated with work-related injuries and illnesses. It’s an important employee benefit that’s required by law in most cases and can provide payment for:

  • Medical care
  • Lost wages while recovering from a covered accident or sickness
  • Funeral and burial expenses if the person dies from the injury or illness

If you have questions about coverage for your company, you can contact our workman’s comp insurance experts by email or phone.

Why Get Workers’ Comp Insurance from biBERK?

When it comes to something as important as protecting your employees and their families, you want to work with a company that understands workers’ comp insurance and has a history of providing exceptional service to small businesses. 

biBERK is part of the Berkshire Hathaway Insurance Group, with all of our major insurance subsidiaries being rated A++ by A.M. Best Company and AA+ by Standard & Poor’s Corporation. That means they display superior financial health and operating performance. Berkshire Hathaway Insurance Group has millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020.

In short, you can trust biBERK to protect your employees and your business like so many other companies do.

What Does Coverage Cost? Get Specifics for Your Company With a Workman’s Comp Quote.

What will it cost to cover your employees? You can find out in minutes by getting a workman’s comp quote online. The rate varies based on a few key factors. One is your total payroll. The higher your payroll, the more you’ll pay for workers’ comp. Your industry and the type of work your employees do figures into your cost as well, as does your claims history. 

To give you a general sense of what you’ll pay, the average cost of workman’s comp insurance per $100 in wages ranges from $.75 in Texas to $2.74 in Alaska.

If you choose to get your workers’ comp coverage through biBERK, our direct-to-you model eliminates the middleman and can save you up to 20% over other insurance companies. Even if you don’t immediately make your purchase online, having a workman’s comp quote can help you budget for the cost so you’re ready to buy your policy before you hire your first employee.

How Quickly can I get Workers’ Comp Insurance?

Every company’s situation is different. But you may be able to get workers’ comp insurance coverage in as little as a few minutes.

How Does Workers’ Comp Insurance Work?

Let’s say your employee is injured in some way at work. For example, they might:

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    Slip on ice on your sidewalk and break their wrist
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    Suffer a head wound from a box that falls off a shelf in a storage room
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    Experience carpal tunnel syndrome that requires surgery as a result of poor typing habits
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    Get a cut that requires stitches while using machinery

Workers’ comp insurance can cover the treatment cost. Then, if the employee has to take time off from work because of the injury, your workers’ compensation policy can help cover their lost wages.

Does biBERK Provide Workman’s Comp Insurance in My State?

When it comes to small business insurance, we offer policies in every state where we are allowed to do so. (In some states, only a designated state entity can provide workman’s comp insurance.) Check out our coverage maps of states served for details.

Frequently Asked Questions About Workers’ Comp Insurance

Our insurance experts are always happy to assist you. But answers to some of the questions we get asked most frequently about workers’ comp insurance are below.

What does workers’ comp insurance not cover?

A workers’ comp policy doesn’t cover injuries that occur outside of work or, in most states, while commuting to or from work. It also doesn’t cover injuries as a result of substance abuse or intoxication, or those that are caused intentionally.

What is a workman’s comp audit?

Your total payroll helps determine your workman’s comp insurance cost. A workman’s comp audit is an industry-standard process in which we review payroll records that you provide to us after your policy ends to ensure you’re not paying too much or too little for your coverage. If your actual payroll is higher than estimated when the policy was purchased, you’ll receive a bill for the additional premium due. If it’s less, you’ll receive a premium refund (subject to minimum premiums).

How do I know if my business is required to have workers’ compensation insurance?

If you have employees, you probably need workers’ comp coverage. Our insurance experts can provide insight on the requirements or you can visit our States Served page for details.

If I’m self-employed, am I required to have workman’s comp insurance?

Typically, if you’re self-employed and have no employees working for you, you don’t have to have workman’s comp insurance. But, some business contracts may require that you have coverage, and having workers’ comp may also help protect your income if you’re injured or become sick as a result of your work.

Workers’ Comp Insurance Provides Priceless Peace of Mind

On top of the financial protection provided by workers’ comp insurance, and the avoidance of fines/penalties for not complying with state laws, most business owners find it provides valuable peace of mind. Knowing that your employees will have financial support if they’re injured or become ill on the job allows you, and them, to focus on work.