Frequently Asked Questions

Q: When do I need to buy workers' compensation insurance?
A: In most states, workers' compensation is required when you have one or more employees. There are a few states that do not require employers to carry workers' compensation coverage.

Q: How much does workers' compensation insurance cost?
A: Workers' compensation pricing is based upon your employee payroll, the number and job classification of the employees, classification of your business and past loss experience. The employer pays the cost of the workers compensations.

Q: Where do I buy workers' compensation?
A: Almost all states are "open market", which means the coverage is underwritten by private insurers; and some states are "closed" or monopolistic"- the coverage is underwritten by a state-sponsored fund (ND, OH, WA, WV, WY). In states that are open, rates can vary between insurance carriers depending on the type of business the carrier is attempting to attract. In an open market the rates for workers' compensation are competitive.

Q: What does workers' compensation insurance do?
A: Workers' compensation pays for the rehabilitation, recovery and medical bills of employees' work-related injuries, as well as lost time when they are unable to work because of a work-related injury. Workers' compensation is not a substitute for health or medical insurance, since employees are only covered for on-the-job injuries.