What is Workers’ Compensation Insurance?

Workers’ Compensation Insurance, or workers’ comp for short, protects your business and your workforce by providing benefits to most employees injured on the job.  In some cases, it also covers the cost of your legal defense if the employee sues you.  These benefits can address medical care and related medical costs, retraining and lost wages until the employee can return to work or compensation for permanent disability.

For example, let’s say you own a small clothing line.  If one of your employees is injured while sewing, your workers’ compensation insurance will cover the cost of their medical treatment and lost wages.

Who needs Workers’ Compensation Insurance?

Workers’ compensation insurance is vital for your business because it help cover the cost of medical expenses and lost wages for injured workers.

You need workers’ comp because:

The state of Florida requires almost every business to have it

A major claim can have a devastating financial effect on your business operations

Workers’ compensation helps protect your most valuable asset—your workforce

How much does Workers’ Compensation Insurance cost?

Workers’ Compensation Insurance costs are different for each business because every business is unique.  Factors that can determine these costs include, but are not limited to:

• Type of Business
• Payroll
• Employees’ type of work
• Sub-contractor usage
• Claims history
• Policy details, like coverage limits, deductibles, additional endorsements

The National Council on Compensation Insurance (NCCI) assigns classification codes based on the type of job workers do.  If your business has a history of claims, this could increase your cost for coverage.

How does Workers’ Compensation work?

Here’s how workers’ compensation works:

• Your injured or sick employee seeks medical help and you submit a worker’s compensation claim with your carrier, providing details of the incident and the necessary information
• The carrier’s claim experts, adjusters, review your submission and upon approval, your injured employee begins to receive benefits that cover their medical expenses, rehabilitation costs and lost wages while they are medically unable to work
• You get back to running your business successfully while you injured employee is on the mend, knowing your carrier has you covered