Workers’ Compensation Frequently Asked Questions (FAQs)

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small business owner feeling secure that he knows the answers to workers compensation insurance faqsWorkers’ compensation insurance is a type of business insurance that provides benefits to employees who suffer work-related injuries or illnesses. This coverage protects your business from lawsuits and keeps your business compliant with state regulations. Below you’ll find answers to workers’ compensation insurance FAQs.

Workers’ Comp Claim FAQs

Employers need to follow a few key steps when filing a workers’ compensation claim. If one of your employees tells you they’re sick or injured from their work, you should follow these steps:
  1. Give your employee a workers’ comp claim form.
  2. Submit official claim paperwork to your insurance company.
  3. Provide accommodations when your employee returns to work.
If you need to start a claim, we’re here to help. It’s quick and easy to submit a claim online with The Hartford.
It’s important for your business to have a return-to-work policy as part of your workers’ compensation process. A return-to-work policy allows your employees to return to a light-duty job while they recover from an illness or injury at work. Its purpose is to help injured or sick employees return to work in a safe and timely manner.
El documento length of workers’ compensation benefits can vary by state. This variation often depends on the type of disability an employee receives. The types of workers’ disability are temporary disability, permanent disability and full or partial disability.
Some states limit the length of time an injured worker can receive temporary benefits. This range can be three to seven years. There usually isn’t a limit on permanent disability benefits. However, some states stop weekly benefits when employees reach the age of 65. Keep in mind that not all states will provide permanent partial disability benefits.

Costs and Rates FAQs

Most of our customers with less than $300,000 annually in payroll paid an average of $81 a month for workers’ compensation insurance.1 Keep in mind that the cost of workers’ compensation insurance varies between businesses. Insurance companies use several different factors to determine your premium, so there’s no standard cost.
Several different factors are considered by your insurance company when calculating your workers’ compensation insurance rate, including:
  • Workers’ compensation class codes
  • Payroll size
  • Industria
  • Claims history
  • Límites de la cobertura
If your employee is receiving benefits because of a work-related injury or illness, they might ask, “Is workers’ compensation taxable?” In most cases, they won’t pay taxes on their workers’ comp benefits. But, if your employee is receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), they may need to pay taxes on a portion of those benefits. Keep in mind that each state has unique workers’ compensation requirements. So, it’s a good idea to encourage your employees to research their state laws and regulations.

Workers’ Compensation for Employers FAQs

If you’re just getting started with a workers’ compensation policy, you may be wondering, “What does workers’ comp cover?” If your employee suffers a work-related injury or illness, your workers’ compensation benefits help cover:
  • Disability benefits
  • Medical care and medical treatment costs
  • Lost wages if they take time off from work to recover
  • Death benefits, like helping to pay for a funeral if they lose their life in a work-related accident or illness
  • Costs related to a lawsuit from an employee’s work-related injury or illness
  • Medical treatments
  • Disability benefits
  • Vocational rehabilitation
  • Death and funeral services
Keep in mind that your workers’ compensation benefits and coverage requirements can vary depending on the state you’re in.
Are you wondering how to get workers’ comp insurance? Es fácil de get a workers’ comp insurance quote online from The Hartford. You can also get in touch with an insurance agent or broker who can help. Be sure to check your state’s workers’ compensation laws and requirements. Some states may require you to get coverage through state-funded programs while others allow you to shop around with different insurance companies.
If an injury or illness occurs while on the job, it’s best to be prepared with a plan. Many employers wonder, “What should I do if an employee is injured on the job?” If one of your employees suffers a work-related injury, make sure they’re treated as soon as possible. If it’s an emergency, call 911 right away. After the injury, your employee can file a claim with your workers’ compensation insurance, also known as workers’ comp, to help get important benefits like medical treatment coverage. In addition, be sure to follow all Occupational Safety and Health Administration (OSHA) recommendations if a severe work-related injury occurs.
To receive workers’ compensation for stress and anxiety, an employee’s job must be the cause of their injury or illness. Mental health injuries that a workers’ comp policy may help cover include stress, depression, anxiety disorders and Post-Traumatic Stress Disorder (PTSD).
Unlike a physical injury, mental illnesses can be more difficult to diagnose. Mental health injuries need to be severe enough to disrupt your employee’s ability to do their job. They should document what they’re experiencing formally in a report that includes the date, time, cause and description of the work injury. Once they do this, you can report their workplace injuries by filing a claim with your insurance company.
If you have any part-time or full-time employees, you’ll likely need workers compensation insurance. Most states require business owners with employees to carry workers’ compensation insurance. Even if you offer your employees health insurance coverage, it may not cover a work-related injury or illness. To cover these claims and help protect your injured workers, you’ll need to have workers’ compensation insurance.
Most states require businesses with any employees to carry workers’ compensation insurance. But you may be able to apply for a workers’ compensation exemption for certain types of workers, like independent contractors. This means you don’t have to provide workers’ comp to cover that worker if they get hurt or sick from their job. While a workers’ comp exemption can help you save on insurance costs, you’re at risk for having to pay for work-related injuries and treatment costs out of pocket.
If your employee suffers a work-related injury or illness, workers’ compensation benefits can help cover:
  1. Medical expenses to treat their injury
  2. Ongoing care to help them recover from their injury and return to work
  3. Death and funeral expenses if they pass away
  4. Lost wage replacement if they need time to recover away from work
  5. Disability benefits if your employees get fully or partially disabled on the job
Workers’ compensation employer obligations are different depending on what state you’re located in, but you’ll generally need to follow these steps:
  1. Get workers’ compensation coverage
  2. Post a notice of compliance
  3. Meet state workers’ compensation board requests
  4. Ensure medical treatment is immediately available
  5. Report the injury
  6. Do not retaliate
In most businesses, human resources managers are responsible for securing and implementing new workers’ compensation policies and procedures. They must handle claims quickly and fairly to avoid lawsuits against the business. The claims process is often the most time-consuming part of workers’ compensation for any HR manager.  
Completing a year-end workers compensation review doesn’t have to be hard. If you have good documentation, it should be easy. You should do a workers’ comp review at the end of each year. Be sure to review your claims, processes and insurance policy and keep these questions in mind:
  • How many claims of sick or injured workers did you make over the past year?
  • How many claims were processed or denied in the year?
  • What changes can you make to improve the process?
  • Do you need different coverages moving forward?
  • Are you ready for a workers’ comp audit if it happened today?
Each state has its own workers’ compensation requirements and laws. In most states, workers’ compensation insurance is required if you have employees. Even if workers’ compensation is optional in your state, it can still be a good idea to have it. If an employee gets injured or ill on the job, workers’ comp will help. Otherwise, you’ll have to pay out of pocket for your employee’s medical care and recovery. Some states may have a state-funded insurance program that would handle the payment for an employee’s medical care and recovery.
Workers’ comp for independent contractors or self-employed businesses can help cover costs from work-related injuries and illnesses. Although workers’ compensation is typically used for employer-to-employee relationships, it also applies to independent contractors too. If you’re self-employed, the laws may differ depending on where you live. In some states, sole proprietors are not required to buy workers’ compensation insurance. But if you’re a general contractor or subcontractor, you may need to buy it if your contract requires it.
Before you buy workers’ compensation insurance, be sure to check with your state laws to see if there’s a required state insurance fund. For example, if you own a small business in California, you can choose either the state fund or private insurers, because the state is competitive and not monopolistic. If you’re in one of the four monopolistic states, you’ll have to buy workers’ compensation through the state insurance fund.  
Repetitive strain injuries (RSIs) result from damaged muscles, nerves and tendons. They can be some of the most expensive and debilitating work-related injuries and range from temporary or permanent, depending on their severity. For example, carpal tunnel syndrome is caused by repetitive motions in the wrists from typing. To best protect your employees, you’ll need workers’ compensation insurance.
If you own a business, you might be wondering, “Who pays for workers’ compensation?” The answer is almost always the employer. Your cost for workers’ compensation is a percentage of your payroll. Unlike health insurance, there are no employee payroll deductions for workers’ compensation insurance. Some states require employers to pay for workers’ comp through a monopolistic state agency. Be sure to know what’s required in your state and how you can buy coverage.
During a workers’ compensation premium audit, your company’s payroll will get verified. Audits look at your payroll because your workers' compensation premiums are mostly based on the compensation paid to your employees over a policy term. The amount paid includes money and benefits your workers received. These audits help to make sure you’re paying the right amount for coverage.
Workers’ compensation insurance helps provide important benefits to employees with a work-related injury or illness. If you’re injured while away from your job and can’t work, you may be eligible for state disability benefits. Workers’ comp disability benefits only apply to injuries or illnesses that your employer is liable for.
El documento best workers’ compensation insurance helps pay for your employee’s medical expenses. It can also help replace some of their lost wages if they take time away to recover from a work-related injury or illness. When you’re choosing your provider or insurance company, it’s important to know your state’s requirements and laws for workers’ compensation insurance. 
To best protect your employees, it’s important to understand the difference between workers’ compensation insurance and health insurance. Workers’ compensation provides benefits to your employees if they get injured on the job or suffer from a work-related illness. Workers’ comp can help pay for medical costs to treat their work-related injury or illness, missed wages and disability benefits. In comparison, your health insurance helps pay your medical expenses for non-work related injuries or illnesses. As a business owner, you can offer health insurance as part of your benefits package for employees.
Si su employee retires while on workers’ compensation, your coverage will continue to pay their medical bills that are related to the injury. However, payments for lost wages are impacted by Social Security retirement benefits and the state your employee lives in. In most states, once your employee reaches retirement age, they can receive both workers’ compensation and Social Security retirement benefits. Although, some states may reduce the workers’ compensation payments.
There are differences in workers’ compensation laws by state. The requirements and penalties for not having coverage can vary depending on where you live. Be sure to know your state’s workers’ compensation laws to make sure you’re compliant. Generally, if you don’t get workers’ comp insurance in a state that requires it, you’ll have to pay a fine. 
Workers’ compensation for small businesses, also known as workers’ comp or workman’s comp, gives your employees important benefits if they have a covered work-related injury or illness. It can help pay for:
  • Medical care if your employees have a work-related injury, like carpal tunnel syndrome
  • Lost wages when your employees need to take time off to recover from an injury or illness
  • Disability benefits if your employees get fully or partially disabled working on the job
  • Death benefits, such as funeral expenses, if an employee loses their life from a work-related injury or illness
  • Legal expenses if an employee sues your business due to a work-related injury or illness

General Workers’ Compensation FAQs

Workers’ comp codes are three- or four-digit codes that identify types or classes of work. Insurance companies use these codes to help estimate risk and industry to determine workers’ compensation insurance costs. Insurance agents or underwriters look up the codes in the National Council on Compensation Insurance (NCCI) Scopes online tool. Each workers’ comp class code includes information on the losses accumulated by specific types of work to help determine insurance costs.
If your employee has a work-related injury or illness, workers’ compensation benefits can help pay their medical expenses, lost wages and more. However, your injured worker doesn’t have to accept your insurance company’s benefits offer for their workers’ comp claim. Instead, they can go after workers’ comp settlements with the help of a workers’ compensation attorney. 
Business owners often ask us, “How does workers’ compensation insurance work?” Workers’ compensation insurance helps protect you and your employees. Workers’ comp offers your employees benefits if they have a work-related injury or illness. This coverage can help cover your injured or sick employees’ medical expenses. It can also help replace wages from lost work time. And it can protect the employer from lawsuits initiated by an injured worker.
Each state has its own bureau that’s in charge of its workers’ compensation laws and regulations. Your employees also have certain workers’ compensation rights related to claims that you should know about as the employer. They can:
  • File a claim for an injury or illness resulting from their job
  • See a doctor for medical care for their work-related injury or illness
  • Get disability benefits for a permanent injury
  • Appeal a court’s decision that they disagree with
  • Get legal representation from a lawyer
Did you know that workers’ compensation industry trends can impact your insurance rates? Some of the top trends that we’re seeing in the workers’ comp industry right now are:
  1. A growing gig economy
  2. Advancing technology
  3. Better workplace safety policies
  4. Regulatory and legislative reform
New technology may bring more advanced working conditions and contemporary office features. However, modern work environments may also have more contemporary workers’ compensation industry risks that need an emergency response plan. These risks include:
  • Medical marijuana in the workplace
  • Opioid addiction
  • Active shooters
  • Inadequate evacuation plans
One of the best things you can do for your company is prioritize workplace safety. And one of the easiest ways to identify hazards in the workplace is to use the GOAL Method. GOAL stands for the “Go Out and Look!” schedule and documents periodic safety inspections. Depending on the exposures and types of hazards, business owners should conduct inspections daily, weekly, monthly or on a quarterly basis.
Insurance companies use several factors to calculate your workers’ compensation insurance premiums. Some factors that can affect your workers’ compensation insurance cost include your industry, location, number of employees and the type or class of work you do.
Insurers may use this formula to estimate your workers’ comp cost:
Workers’ Classification Code Rate X Experience Modification Number X (Payroll/$100) = Premium**
Your experience modification number is a value used by insurance carriers to measure both the past cost of workers’ compensation claims and the future probability of additional claim costs.
Workers’ compensation fraud happens when an employer, employee or health care provider lies to benefit financially. Typically, if a business is caught committing workers’ comp fraud, it can lead to higher insurance premiums and penalties. 
Workers’ compensation has a long historia that made it an important part of protecting the United States. workforce. It took the U.S. 37 years for every state to pass its own workers’ compensation law. Although laws vary by state, most states require employers to carry workers’ compensation insurance to protect themselves and their employees. Without it, an employee who gets hurt or sick from their job wouldn’t get benefits to help them recover.
Stop gap insurance helps protect business owners from lawsuits due to workplace injuries or illnesses. Like its name implies, it aims to stop a gap in coverage in a business owner’s workers’ compensation insurance policy. If you have workers’ comp coverage from a private insurer like The Hartford, your policy includes employer’s liability coverage to help protect you from lawsuits due to work-related injuries or illness. 
Small businesses who operate from home still need workers’ compensation for remote workers. This coverage is important because it can help pay medical costs for injuries that occur on the job for your employees. So, if your remote employee develops carpal tunnel from typing on the job, workers’ comp can help pay for their medical bills.
Un certificate of workers’ compensation insurance is an official document from your insurance provider. The certificate of insurance is proof that your company has workers’ compensation insurance to cover your employees if an injury or serious illness happens on the job. The workers’ comp certificate of insurance includes information about who the insurance provider is, your policy number and the dates of coverage. It will also show that your business is following the legal requirements to protect employees.
Workers’ compensation insurance is meant to protect both employers and employees, as it provides benefits to both parties. For employers, a workers’ compensation insurance policy helps protect the business and owner. Without this insurance, you could be financially responsible if an employee gets injured or sick on the job and files a lawsuit against your business. For a sick or injured employee, the workers’ comp benefits give them access to vocational rehabilitation, compensation for permanent injuries and survivors’ benefits.
Última actualización: 31 de mayo de 2024
1 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
** This is a simplified calculation for educational purposes only. Actual premium calculations can be more complex. Experience mods are subject to state requirements and do not apply to every policy.
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