Workers’ Compensation Insurance
If you have employees, you almost certainly need workers’ compensation. Nearly every state requires it, and it pays medical bills and lost wages when an employee is hurt on the job, while protecting your business from most employee injury lawsuits. Stonebrook places workers’ comp for single-state and multi-state employers nationwide.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What does workers’ compensation cover?
Medical care, lost wages, rehabilitation and death benefits for employees injured or made ill by their work, plus employer’s liability for related lawsuits.
Is workers’ comp required?
In nearly every state, yes, for businesses with employees. Rules on who must be covered vary by state.
How is workers’ comp priced?
By payroll in each job classification, multiplied by a rate, then adjusted by your experience modification factor.
What is an experience mod?
A factor that compares your claims history to similar businesses. Below 1.0 lowers your premium; above 1.0 raises it.
What workers’ compensation covers.
Workers’ compensation benefits
Medical treatment, lost wages, rehabilitation and death benefits as set by each state’s law.
Employer’s liability
Lawsuits related to employee injuries that fall outside the workers’ comp system, such as claims by a spouse.
Other states coverage
Protects you when employees work or are hired in states not listed as primary on the policy.
Occupational illness
Illnesses caused by work, such as repetitive strain or exposure-related conditions.
Return to work
Many carriers support modified-duty programs that shorten claims and lower costs.
Audit
Premium is estimated up front and adjusted after the policy year based on actual payroll.
What drives your workers’ comp premium.
| Factor | What it means |
|---|---|
| Payroll | Premium is calculated per $100 of payroll |
| Class codes | Each type of work has its own rate; nursing aides rate higher than office staff |
| Experience mod | Your claims compared to similar employers; it can raise or lower premium significantly |
| State | Each state sets its own benefits and rules, so rates differ by state |
| Safety and claims management | Training, prompt reporting and return-to-work programs reduce claims and, over time, your mod |
Workers’ comp where lifting is part of the job.
In skilled nursing, senior living and adult day care, staff lift, transfer and reposition people every day, which makes back and shoulder injuries common.
Safe patient handling equipment, training and quick claim reporting are among the best ways to control workers’ comp costs in these settings.
For real estate investors and multi-family owners, workers’ comp covers superintendents and maintenance staff, and certificates from contractors protect you from their uninsured workers.
A few states, including Ohio, Washington, North Dakota and Wyoming, require workers’ comp through a state fund. Employer’s liability for those states is arranged separately, and we can help.
How to avoid a large audit bill.
- Estimate payroll accurately.Update us when you hire, give raises or add locations.
- Classify employees correctly.Make sure each role is in the right class code.
- Collect contractor certificates.Uninsured subcontractors can be added to your payroll at audit.
- Keep records organized.Payroll reports by class and by state make audits faster and fairer.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop workers’ compensation across carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Workers’ comp questions, answered.
What does workers’ compensation insurance cover?
It covers medical care, lost wages, rehabilitation and death benefits for employees injured or made ill by their work, as set by state law, and employer’s liability coverage for related lawsuits.
Is workers’ compensation required by law?
In nearly every state, yes, for employers with employees. Each state sets its own rules about which employers and workers must be covered.
How much does workers’ comp cost?
It depends on payroll, the type of work each employee does, your state and your experience modification factor. Premium is calculated per $100 of payroll for each class code.
What is an experience modification rate?
A factor that compares your workers’ comp claims to those of similar employers. A mod below 1.0 reduces your premium, and a mod above 1.0 increases it.
Why do I owe money after a workers’ comp audit?
Because your actual payroll was higher than estimated, employees were classified differently, or uninsured subcontractors were added. Updating your estimates during the year reduces surprises.
Do independent contractors need to be covered?
It depends on the state and the working relationship. Misclassified workers can be treated as employees, and uninsured subcontractors may be added to your premium. Collect certificates from every contractor.
Can one policy cover employees in several states?
Yes. A workers’ comp policy can list multiple states and include other states coverage, except in states with monopolistic state funds.
Let’s take care of your people and your premium.
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