Workers’ compensation, sometimes known as workmans comp, insurance is a coverage that serves 2 purposes.
Workers’ comp coverage protects workers on the job. If an employee is injured while working for an employer, workers’ compensation coverage kicks in and provides compensation for a certain portion of the income they will lose due to being unable to work when injured. The coverage is applicable no matter who was at fault for the accident, the employer or the employee.
Compare top providers to find the the best workers’ compensation insurance for your business today.
The Best Workers Comp Insurance:
- Best Overall: The Hartford
- Best Programs: Progressive
- Best Savings: biBERK
- Best for Experience: Liberty Mutual
- Best for Multinational Businesses: Zurich
Workers’ compensation coverage also covers employers against lawsuits from workers who were injured while working for said employer. If an employee dies while working on the job, the coverage will also provide death benefits for any dependents.
It must be noted that workers’ compensation laws vary by state. Most states require all employers of a certain size to carry coverage. A few states don’t mandate coverage. For example, Texas does not require workers’ compensation coverage but requires employers to cover all medical expenses and costs related to an injury on the job.
Employers and employees alike should confirm the laws and legalities of workers’ compensation insurance in their state.
Breaking Down Workers’ Compensation Insurance
To further understand workers’ compensation and how the coverage works, it should also be noted that while these policies can become complex and detailed, the gist of the coverage is simple.
An employer is generally required by state law to hold some form of workers’ compensation insurance once they employ over a certain number of employees. The coverage applies to any injury incurred during the scope of employment.
For example, if an employee driving a car for work purposes gets into an accident that causes an injury, the workers’ compensation coverage would kick in. While it doesn’t matter if the car is personally owned or a company automobile, the coverage does not apply to and from work.
Generally, all injuries incurred while working are covered, even in rare instances such as natural disasters, terrorist attacks, and workplace violence.
Workers’ compensation also covers death and disability. If an employee dies from injuries on the job or is permanently disabled, the coverage provides benefits to the disabled individual or his grieving dependents.
Finally, an employee can waive his or her coverage and sue the employer if he or she believes this or her injuries stemmed from neglect. In such instances, the policies offer protection against lawsuits, legal costs, and more. This is an important factor for many businesses, as legal costs can add up to many lawsuits.
What is Not Covered?
There is no 1-size-fits-all workers’ compensation policy once you start looking across state lines. However, there are a few situations in which most workers’ comp policies will never cover:
- Workplace safety costs. If employees keep getting hurt on the job, an employer will need to make changes to the workplace and take safety measures into account. If not, said employer could be fined by OSHA. These safety improvements and measures will not be covered by any workers’ comp coverage.
- Replacement employees. When an employee is injured and not working, an employer may need to fill the position to ensure work gets completed on time. While workers’ comp insurance pays an injured employee’s wage during this time, a company will be responsible for the replacement employee costs.
- 3rd-party problems. If a 3rd party sustains an injury while at a place of business or job site, workers’ compensation will not cover the costs for the 3rd party, like a customer. Workers’ comp is only for employees. A business is required to hold general liability insurance for injuries potentially sustained by third parties.
- OSHA penalties. An employer is responsible for maintaining a standard level of workplace safety and OSHA makes sure the company follows through on that standard. If not, an employer could be fined by the organization. Workers’ compensation insurance does not cover OSHA fines for a company.
With regard to the cheapest workers’ comp rates, North Dakota has the cheapest. When rates were measured using a comparable basis, North Dakota had the lowest workers’ comp rates in the U.S.
Where the average workers’ comp cost index cost was $1.85 in other U.S. states, North Dakota employers only paid $0.88 per $100 of payroll.
Most Expensive Rates
On the other side of the coin, California is the U.S. state with the highest workers’ comp rates. Employers pay $3.48 per $100 of payroll in workers’ compensation. This is significantly more than North Dakota at $0.88 and well above the national average of $1.85.
The 5 Best Workers Compensation Insurance Companies
For employers looking for coverage, Benzinga recommends a list of the top 5 workers’ comp insurance providers.
1. Best Overall: The Hartford
With 5.81% of the market, Hartford Group is the second biggest provider in the U.S. When you get coverage with The Hartford you get a preferred medical provider network, prescription drug features, nurse case managers and pay-as-you-go billing solutions. With The Hartford, employers can select to pay premiums annually or as they go.
The Hartford goes above and beyond by offering benefits that can’t be found with every insurer. Get a custom quote today for the best premium on the market.
2. Best Programs: Progressive
Progressive offers 1-stop shopping for workers’ compensation insurance through its Progressive Advantage Business Program. This program offers small businesses an array of insurance solutions underwritten by specially chosen carriers.
Getting a quote is easy online through our partner or live on the phone with a trained expert. The specially trained experts help ensure tailored insurance coverage to match your needs.
3. Best for Savings: biBEK
Berkshire Hathaway’s biBERK provides small business owners a straight-forward, cost-effective workers’ compensation insurance. biBERK takes the middleman out of the fray so you get insurance straight from the source.
According to its website, you’ll likely save up to 20% on costs. Plus, you’ll save time from the get-go with its easy online quote tool and claims process.
Finally, as Warren Buffett leads Berkshire Hathaway, you can rest easy knowing that biBERK inherits the experience, stability and dependability from its parent company.
4. Best for Experience: Liberty Mutual
Established in 1912, Liberty Mutual brings experience to its insurance service. Its workers’ compensation lpolicies can support your business with a variety of supports.
Liberty Mutual can assist injured workers in obtaining necessary medications for work-related injuries without out-of-pocket expenses. It also offers a full slate of risk control services to help you lower your total cost of risk to prevent accidents from ever happening.
It also offers solutions for non-work related injuries. Contact Liberty Mutual to learn more about its group disability and absence management employee benefit offerings.
5. Best for Multinational Businesses: Zurich
Zurich Insurance holds over 5% of the workers’ comp market and writes billions in premiums each year. Zurich is praised for their fast, responsive claims service and its ability to service all employees, no matter their location.
Click the custom quote option to get instant rates and start insuring your employees with the best and most knowledgable carriers.
Find Workers’ Comp Coverage Today
The best policy for an employer will depend on the state, rates, and other factors. There is not a 1-size-fits-all policy when looking at workers’ comp coverage.
Compare coverage options from our top providers to find the best workers’ compensation insurance policy today.