Workers' compensation provides financial support for medical care, lost income, and other expenses that arise after an employee experiences a workplace injury. It benefits both injured workers and business owners by assisting with costs related to accidents that occur while on the job. For instance, if a construction worker's foot is injured due to a heavy beam falling on it, workers' comp can help pay for medical treatment and missed wages. Without such coverage, the employer could be held responsible for expenses that amount to tens of thousands of dollars.

It's worth noting that workers' compensation isn't only for high-risk jobs. Even relatively safe businesses may experience repetitive-motion injuries, slip-and-fall accidents, or strains. As a result, many small business owners purchase workers' compensation insurance since most states require it as soon as the first employee is hired. This coverage helps safeguard against financial losses from workplace injuries and provides peace of mind to both employees and employers.

In most states, business owners are obligated by law to provide workers' compensation coverage for their employees. However, the specifics of these laws vary by state. For instance, in Colorado, coverage must be obtained as soon as an employee is hired, while in Tennessee, it's only mandatory once there are five or more employees. To learn more about the workers' comp regulations in your state, refer to the section below on this page.

Even in cases where it's not required by law, many business owners opt to obtain coverage to provide financial security in the event that an employee suffers a job-related injury or illness.

You might be required to have coverage to get a license or permit

In some professions, obtaining workers' compensation coverage may be a requirement for obtaining a license. For instance, many states may ask for evidence of workers' comp insurance as part of their general contractor license criteria.

If you find yourself in a situation where you need to obtain coverage promptly to fulfill a license or bid requirement, GravySpoon offers quick coverage solutions. With GravySpoon, you can acquire coverage within minutes and gain instant access to your certificate of insurance.

When an employee experiences a work-related injury, workers' compensation can assist in covering their medical bills and other relevant expenses. Some examples of what workers' compensation claims can help pay for are:

• Medical expenses

• Lost wages

• Retraining

• Permanent injury

• Death benefits

• Employer liability

Many of the benefits listed above are also available for business owners if they purchase optional business owner’s coverage with their policy.

Does workers’ comp offer coverage for employee lawsuits?

In addition to covering medical expenses and lost wages for injured employees, workers' compensation insurance also includes employer liability coverage. This coverage can provide financial protection for businesses if an employee sues them for causing a workplace injury or illness.

Employer liability coverage can encompass various types of lawsuits, including those related to negligence. This means that if an employee alleges that their injury was caused by the employer's negligence, the employer liability coverage may help cover the resulting legal fees, settlements, or judgments. By having this coverage, businesses can protect themselves from significant financial losses that may arise from such lawsuits.

Learn more about what workers’ compensation insurance covers.

What is not covered by Workers’ Comp?

While workers' compensation insurance provides essential financial protection for businesses, it is often not the only type of insurance that business owners need. Below are some other types of business insurance that may be beneficial for your business:

• General liability can provide coverage for injuries to people who are not employees and damage to property that doesn’t belong to you.

• Commercial property insurance can help protect the things you need to do business, including inventory, equipment and structures.

• Professional liability insurance can provide financial protection if you are accused of making a professional mistake.

• Commercial auto insurance can provide protection if you or your employees drive for work.

Does Workers’ Comp cover COVID?

While workers' compensation insurance can provide important financial protection for employees who suffer from work-related injuries or illnesses, it may not always cover COVID-19 infections. However, if an employee can prove that they contracted the virus at their workplace, they may be eligible for coverage depending on their state and industry.

It is crucial to review the specific workers' compensation laws in your state and how they apply to your policy and the work that you and your employees do. Please note that workers' comp claims related to COVID-19 are evaluated on a case-by-case basis.

Therefore, it's important to consult with your insurance provider or a legal professional to determine what coverage is available to your employees and your business in the event of a COVID-19 infection.

Most businesses with employees need workers’ compensation. It’s required by law in most states, or business owners buy it to avoid potentially large financial losses.

Learn more about the specific workers’ comp needs for different types of businesses:

• Construction

• Contractors

• Retail

• Cleaning

Do I need Workers’ Comp if I am self-employed?

There is a widespread belief that workers' comp is solely intended for businesses that employ workers. However, self-employed individuals, sole proprietors, and LLCs can also purchase optional workers' comp coverage to protect themselves financially and meet contract obligations with clients.

If you sustain an injury while working and don't have workers' comp, your personal health insurance might not provide coverage. Therefore, it is crucial to review your policy documents carefully to ensure that you have adequate protection.

The cost of workers' compensation insurance is calculated based on several factors, which include:

• The number of employees at your business

• Your payroll

• Location of your business

• Your business operations

• The job functions of your employees

• Claims history

Businesses that are exposed to more risks typically pay higher insurance premiums, whether they are buying workers’ compensation coverage or other types of business insurance.

This means that there is a significant difference in insurance costs between construction businesses and accountants, for example, due to the higher risk of work-related injuries in the construction industry.

Learn more about workers’ compensation costs.

With GravySpoon, you can easily obtain a quote and buy workers' compensation insurance in just 10 minutes online. Although, this type of insurance is more complex than other business insurances due to strict state regulations and specific business details required for coverage. However, GravySpoon strives to make the process simple and straightforward with an effortless online application. To get started, you can initiate an instant quote where you'll be asked questions about your business to create a personalized policy that caters to your needs. Some of the details that you should be ready to provide include:

• The type of work you do

• Where you do business

• The type of business you own and how many years you have been in business

• The number of employees at your business

• Total payroll

• The type of work your employees do

• Your federal employer identification number. You can typically find this on your tax documents, or apply for one online with the IRS.

If you need assistance with the workers’ compensation insurance application process or have any questions about coverage options, our team of licensed U.S.-based insurance advisors are available to help you.

In addition, you can save both time and money by bundling other types of business insurance policies with your workers’ compensation policy. It’s important to note that coverage options and eligibility for discounts may vary from state to state.

The process of filing a claim with GravySpoon is quick and easy. You can do it online or through the GravySpoon app from anywhere and at any time. When filing a claim, you will need to provide specific details about what happened, and you may be asked to submit relevant photos and documentation.

At GravySpoon, our goal is to make claims decisions within 48 hours, so you can receive your benefits and get back to your work as soon as possible. If you need further assistance or have questions about the claims process, our licensed insurance advisors are available to help. To learn more about how to file a claim with GravySpoon, visit our website.

If you have additional questions about workers’ compensation insurance, you can find more information in our FAQs section. Our team of licensed insurance advisors is also available to assist you in case you can't find the answers you need.

Does Workers’ Compensation cover business interruption?

It's important to note that worker’s compensation insurance does not provide coverage for business interruption. However, business income interruption is a type of property insurance that can protect a business against income loss due to an unexpected event like a fire or snowstorm. GravySpoon offers commercial property coverage that includes business interruption insurance. If a business suffers a loss of income due to an event such as a wind storm causing damage to their property, business interruption insurance can help cover the lost income.

Does Workers’ Compensation cover my subcontractors?

Subcontractors are usually not covered by workers’ compensation since they are not considered employees of your business. However, there are some cases where subcontractors may be classified as your employees, particularly in certain industries and states where they don't have their own workers' compensation coverage. In these cases, you must report their payroll as part of your employees, and they will be covered under your workers' compensation policy. It is essential to review your policy documents carefully as each state has different requirements and regulations for workers' compensation.

I'm the owner of the company. Am I covered by workers’ compensation if I'm injured on the job?

Optional business owners’ coverage in workers’ compensation can provide coverage for injuries to business owners. This means that if you are the owner of a company and sustain an injury at your work site, you may be eligible for help with medical bills and lost wages. It's important to note that personal health insurance might not cover medical expenses for work-related injuries, particularly if you work in industries such as construction. Therefore, obtaining workers’ comp for yourself as a business owner can offer an additional layer of protection.

Who is exempt from Workers’ Compensation insurance?

Workers’ compensation is mandatory for employees in every state except Texas. However, there are usually a few exceptions to the requirement in each state. It's essential to review the insurance requirements in your workplace.

In some states, certain types of workers are not required to have workers' comp coverage, such as:

• Agricultural employees

• Domestic workers

• Real estate employees

• Coaches for children’s teams

It's important to review the exemptions specific to your state before making a decision about whether or not to purchase workers' compensation insurance.

Do business owners without employees need to buy workers’ compensation?

As a business owner with no employees, it's generally not mandated by law to purchase workers’ compensation insurance, especially if you're a sole proprietor, partner or LLC member. However, certain industries such as construction may have different requirements.

Even if it's not a legal obligation, some clients may request proof of insurance before hiring you. A certificate of insurance for workers’ comp can assure clients that you have coverage in case of any injury that may occur while working for them.

Do contractors need Workers’ Compensation insurance for themselves?

Sole proprietors and independent contractors are typically not legally required to have workers’ compensation insurance if they do not have any employees. However, if you work in the construction industry, you may be subject to different regulations and may need to obtain coverage before taking on jobs. Even if it’s not mandated by law, having an active workers’ comp policy can still be beneficial. If you become ill or injured while working, workers’ comp can help cover medical expenses and lost wages. If you have employees as a sole proprietor or independent contractor, you will likely need to obtain workers’ compensation insurance for them, with the exception of Texas. To learn more about workers’ comp for contractors, visit our website.

What’s the difference between Workers’ Compensation and disability insurance?

Workers' compensation and disability insurance are two types of insurance that provide financial support for workers who are unable to work due to an injury or illness. However, there are some key differences between the two:

• Workers' compensation only covers injuries or illnesses that occur while the employee is working, while disability insurance covers injuries or illnesses that occur outside of work as well.

• Workers' compensation is typically required by law and is paid for entirely by the employer, while disability insurance is often optional and the costs are usually shared between the employer and employee.

It's important for workers to understand the differences between these two types of insurance so they can make informed decisions about what kind of coverage they need.

Does workers’ compensation pay disability benefits?

Workers’ compensation benefits and disability benefits are distinct from each other.

If a workplace injury results in a permanent disability that prevents an employee from returning to work, workers’ comp may provide some form of permanent injury benefits, but the details of these benefits differ from state to state.

You will require a workers’ compensation doctor to confirm that your disability was caused by work-related conditions, and that the disability is permanent and unlikely to improve further. This is referred to as “maximum medical improvement,” or MMI.

For instance, if an employee at a moving company injures their back from lifting too many heavy boxes and becomes unable to work, a doctor will assess the degree of permanent limitation and rate the disability as a percentage. Permanent total disability means you are unable to work in any field, while permanent partial disability refers to a lasting impairment that remains even after the initial injury or illness, such as hearing loss. These are common types of workers’ compensation claims.

How is workers’ compensation different from health insurance?

Workers’ compensation and health insurance cover different types of injuries and have different purposes.

Workers’ compensation is designed to cover work-related injuries and illnesses, including medical expenses and lost wages if you are unable to work due to the injury.

Health insurance, on the other hand, covers personal injuries and ailments that happen outside of work. While it may cover many of your medical expenses, it typically does not cover any lost wages while you’re recovering after a workplace injury.

It’s important to have both types of insurance coverage to ensure you are protected in all situations.