Workers Compensation Coverage

In most instances, carrying Work Comp Coverage is Mandatory

Workers Compensation laws provide money and medical benefits to an employee who has an injury as a result of an accident, injury or occupational disease on-the-job. Workers Compensation is designed to protect workers and their dependents against the hardships from injury or death arising out of the work environment. It is intended to benefit the employee and the employer alike. The employee received money (usually on a weekly or biweekly basis) and medical benefits in exchange for forfeiting the common law right to sue the employer. The employer benefits by receiving immunity from court actions against them by the employee in exchange for accepting liability that is limited and determined. The question of negligence or fault is usually not at issue.


Work Comp coverage is becoming increasingly more difficult to secure. Many states have seen double-digit increase in workers compensation premiums in recent years. The reasons for this are too numerous and detailed to go into here, but there are things you can do to keep your costs down.


  • Establish solid hiring practices.  Check references and past employers.

  • Establish and adhere to a safety training program.

  • Establish a safety committee in the business.

  • Although it's far easier said than done, try to keep employee turnover as low as possible.


When shopping for workers compensation insurance, these are what carriers look for to price your business:


  • Claims experience - if you can demonstrate a good claims experience, this alone should meet the criteria of most premier workers compensation carriers and keep you out of the "pool" - meaning better premium rates for you.

  • Do you offer health benefits?  Employees with health insurance tend to have fewer workers comp claims.

  • Average wages

  • In hospitality risks, the percentage of alcohol sales. Insuers prefer "family" type restaurants as opposed to bars or nightclubs.

  • Catering or delivery exposures.