Workers Compensation Insurance

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Workers compensations pays for employees injuries on the job

Most states require businesses to carry WC

Self-employed businesses w/o employees don't need Workers' Compensation Insurance


Workers’ compensation is a program through the U.S. Dept of Labor that provides monetary assistance to employees who get hurt on the job.

Employers offer this as a way to replace the loss of income, provide access to necessary medical treatment, receive vocational rehab and additional benefits. 

workers compensation insurance

What Is Workers Compensation, and What Does It Cover? 

Insurance companies offer Workers Compensation insurance as a safety net for the just-in-case scenario. Workers’ compensation pays for medical expenses for injuries or illness from the following:  

  • Muscle strain due to overexertion during a shift
  • Lifting heavy equipment incorrectly while on the job, which leads to pulled muscles or back pain
  • Falling on the job due to slippery spots or obstacles, resulting in sprains or fractures
  • Falling objects, causing severe head trauma
  • Accidentally cutting yourself while using heavy machinery
  • Attacks from a coworker or client

If you or a loved one dies as a result of a work-related injury, the workman’s compensation covers funeral expenses.

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Other work-related coverage includes disability, whether temporary or permanent, therapy treatments, exposure to harmful chemicals, and progressive injuries, such as carpal tunnel.

There are statutes of limitations that you must meet to receive benefits. Each state has its policies regarding workers’ compensation.

workers compensation insurance

In fact, most states require employers to carry workman’s compensation packages. 

Dodo Definitions

insurance terms explained:

Independent Insurance Agency:  You can buy insurance from an indendent agency but they represent other companies (typically several).  For example, an independent agent who works for Acme Insurance Agency might sell you an auto insurance policy insured by Travelers Insurance.

What Types of Businesses Need Workers Compensation Insurance?

All businesses in the United States must carry some form of workers’ compensation, but conditions vary per state.

Factories, construction companies, charter boats, Daycares, hospitals, dance studio, Janitorial Businesses, schools, day spas, retailers, general contractors, carpenters, painters, caterers and other businesses that have employees need workman’s comp.

Small businesses refer to workman’s comp as small group health insurance and general liability insurance.

Self-employed businesses without employees are exempt from providing workers’ compensation.

Businesses who hire contractors to work for them often require them to carry their own liability insurance, including workman’s compensation.

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