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Best Workers Compensation Insurance of 2022

Bryan Keith

If you have employees who work for you, workers compensation insurance will provide financial support and medical benefits to your staff who get injured or become sick because of their work. We’ve evaluated the best workers compensation insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Offers a range of insurance poilicies

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Simply Business provides insurance policies for a range of professions and small businesses.

What we like

  • Various business insurance policies
  • Quotes from multiple providers
  • Fast and easy application
  • Strong customer satisfaction

What we don't

  • Policies are a through a third party
  • Claims must be filed through insurance provider

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

eCommerce-only insurance solution

$2,000,000

Coverage Up To

$0 - $5,000

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is workers compensation insurance?

As a business owner, you are responsible for providing a safe work environment and protecting your staff in the event of illness or injury.

Workers compensation, commonly referred to as “worker’s comp” is insurance coverage that protects employees if they are to be injured at work. It can help cover medical costs, rehabilitation costs, and even supplement lost wages due to not being able to work. It is important for employers to carry this coverage because it is mandatory in most states. In fact, if an employer didn’t have worker’s comp insurance and one of their employees was injured on the job, they could be held liable for all their medical bills.

Who needs workers compensation insurance coverage?

Most states require businesses with employees to carry workers compensation insurance. This is an insurance policy that will provide benefits to your employees in the event that they are injured while working. Even if you have health insurance for your employees, that does not cover work-related illness or injury, so you will want to have a worker’s comp policy as well.

If you are self-employed, you will want to check with your state’s laws regarding insurance requirements. Some states require businesses with even just one employee to carry worker’s comp insurance.

Types of workers compensation insurance policies

There are several different policy types under worker’s compensation coverage. These include:

  • Medical coverage: If your employees get injured while on the job, medical coverage can reimburse them for their medical bills. This coverage typically takes care of doctor’s visits, physical therapy, medication, and surgery. Long-term equipment like crutches and wheelchairs may also be covered.
  • Disability coverage: This coverage is to help replace any lost income your employee suffers due to their illness or injury. Partial disability benefits are for employees who can still do a little work, but not as much as pre-injury. Disability coverage can help bridge this gap in earnings. If they are unable to work at all, they will receive total disability benefits. Disability benefits can be partial or total, and temporary or permanent. Permanent disability can be different in each state, so be sure to ask your insurance representative about your state’s laws.
  • Rehabilitation coverage: This coverage helps pay for therapy your staff needs to recover from injuries.
  • Death benefits: In the event the injury or illness is fatal, death benefits can be paid out to their family. Benefits are typically paid to those who depend on the employee’s income, such as a spouse, elderly parent, or children.

What does workers compensation insurance cover and exclude?

Worker’s comp can provide many benefits to your employees. It covers accidents and injuries such as falling off a ladder or a roof, occupational illness such as inhaler chemicals that can make you sick, or repetitive stress injuries such as carpal tunnel.

Certain types of alternative care may not be covered by your worker’s comp policy, such as:

  • Acupuncture
  • Naturopathic treatment
  • Homeopathic medicine

Worker’s comp does not cover injuries that did not happen on the job, self-inflicted injuries, or injuries that occurred due to negligence or unlawful behavior.

What are the limits of workers compensation insurance?

Worker’s comp policies are different depending on the state you do business in and other factors such as the number of employees, payroll, industry, and type of work. These factors come together to determine the premium that you will pay for the insurance policy. Worker’s comp limits are broken down into two parts: employee benefits and employer liability.

Employees who are injured or fall ill while on the job are typically able to have all medical bills covered with no limits. They can also receive a percentage of lost wages that varies by state, partial or full disability, which can be temporary or permanent and death benefits.

Employers’ liability, however, can have limits. Employer’s liability coverage is something that can be tacked onto a worker’s comp policy, and typically only raises the price by around 1%. This coverage can protect employers from lawsuits, legal fees, and court costs. The limit on this coverage is set at a minimum of $100,000 in most states, with other states having limits of $500,000 to $2 million.

How much does workers compensation insurance cost?

Workers compensation insurance can differ in cost depending on the geographical location, industry, type of work, and the number of employees you are insuring. The average cost of workers compensation insurance is $936 per employee per year.

How to choose the best workers compensation insurance?

Here are some tips to consider when looking for a policy:

  • Research your state’s laws: Look into the laws in your state to make sure you are compliant with all state requirements.
  • Compare insurance agencies: The first thing you want to do is compare different providers to view the cost of the plans and the coverage they provide. You can call and ask to speak with an insurance agent, and they can go over their plans in deeper detail.
  • Check reviews of the provider: You want to make sure you are selecting an insurance provider that is easy to communicate with, willing to help you understand your plan, and does not have a history of unethical behavior.
  • Determine how much coverage you need: Compare the coverage limits between several policies and weigh the costs of the plan against the coverage provided.