Workers’ Compensation Insurance for Businesses

Workers’ compensation insurance is essential protection for businesses in most states. Not only is it legally required, but it also safeguards the employees who keep your business running strong.

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance provides medical and wage-replacement benefits to employees who become injured, ill, or disabled due to work-related duties. Each state regulates its own workers’ comp requirements, which means benefits and guidelines can vary.

This coverage supports employees by paying for:

Medical treatment and recovery
Lost wages
Long-term disability
Benefits for workplace-related death

Workers’ comp insurance can also help protect your business by reducing the risk of costly employee lawsuits related to work injuries or illnesses.

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Who Does Workers’ Compensation Insurance Cover?

Workers’ comp insurance provides coverage for both employees and employers:

Employees

Helps cover medical bills related to job-related injuries or illnesses
Provides partial wage replacement during recovery
Offers support for long-term disability or death claims

Employers

Protects your business if an employee files a lawsuit related to workplace injuries or illnesses
Helps cover legal fees, settlements, and related costs

How Workers’ Compensation Insurance Works

Workers’ compensation is designed to protect both sides when an accident or illness occurs on the job. Employees can file a claim only if their injury or illness is directly connected to their work duties.

Common examples include:

Strains or sprains from heavy lifting
Slip-and-fall injuries
Accidents involving machinery

Which Injuries Are Covered by Workers’ Comp?

Workers’ compensation typically covers injuries that occur:

On your business premises
At off-site locations while performing job responsibilities
In work-related vehicle accidents
From workplace violence, natural disasters, or terrorist events
From occupational diseases or chemical exposure

Workers’ comp does not cover injuries that occur:

Outside of work
During the commute to or from work
Intentionally
Due to intoxication or substance abuse

Who Is Required to Carry Workers’ Compensation Insurance?

In most states, any business with employees (other than owners) must carry workers’ compensation insurance. Failing to do so can result in serious penalties, including:

State fines
Paying claims out-of-pocket
Possible criminal charges
Losing the right to operate your business

Workers’ comp costs vary by state and depend on industry risk levels, payroll size, and claims history. States with more generous benefits often have higher premiums.

Generazio Associates, Inc. Insurance is an independent insurance agency believing in helping local businesses with exceptional insurance products and services each and every time.

Contact Generazio Associates at (973) 429-8100 to discuss how we can help with your workers’ compensation insurance needs.

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