What workers’ compensation may provide
Workers’ compensation programs commonly provide benefits such as medical treatment and partial wage replacement for eligible work-related injuries or illness. The benefits, eligibility rules, and claim process are governed by applicable law and policy terms; the actual result depends on the individual claim.
Workers’ compensation serves a different purpose from general liability. It is not intended to pay for damage to a customer’s building, a contractor’s tools, or a work vehicle.
Examples from contractor work
Examples include an employee who is hurt in a fall from a ladder, strains a back while handling materials, or develops a condition alleged to be related to work exposure. Whether a particular injury or illness is compensable is decided under the applicable rules and claim facts.
Requirements and limitations
Workers’ compensation rules are not uniform across the country. Requirements, exemptions, owner or officer elections, worker-status tests, and treatment of subcontractors can vary by state and job circumstances. A “1099” label or contract statement alone may not resolve worker status. Check the relevant state workers’ compensation authority and discuss your actual work arrangements with a qualified insurance or legal professional.
Benefits are subject to applicable eligibility rules, reporting requirements, policy terms, and claim determinations. Workers’ compensation is not a guarantee that every illness, injury, or requested expense will be covered.
What can affect the cost
Premium is commonly influenced by payroll and the classifications assigned to the work. In jurisdictions and cases where experience rating applies, an employer’s loss experience compared with similar businesses can also affect the premium. Work classifications, rating plans, eligibility, state-approved rates, and other adjustments vary; a quote requires accurate business and payroll information.
Details to prepare
Gather the states where employees will work, each person’s job duties and estimated payroll, number of employees, owners or officers and their desired inclusion status, and details about subcontractors. Also prepare prior policy and claims information, estimated payroll by type of work, and any contract or project requirements. Confirm how the applicable state rules treat your specific arrangements.
Common questions
Do I need workers’ compensation if I am a solo contractor?
There is no single answer for every state or job. Rules may differ for sole proprietors, owners, officers, and particular contracting arrangements. Confirm current requirements with the workers’ compensation authority for each state where the work is performed.
Are subcontractors automatically covered by my policy?
Do not assume they are. Their status and treatment can depend on state law, the facts of the working relationship, contracts, and policy terms. Ask how subcontractor payroll and proof of coverage should be handled for your specific operations.
What benefits may be available after a work-related injury?
Depending on the applicable program and claim, benefits may include medical treatment and partial wage replacement. Eligibility, benefit amounts, and other available benefits vary by jurisdiction and claim circumstances.
What information is usually needed for a workers’ compensation quote?
Be prepared to provide work locations, employee job duties, estimated payroll by type of work, employee and owner details, subcontractor arrangements, and prior coverage or loss information. Classification and rating rules vary, so accurate details matter.
Helpful resources
These independent resources provide more information about this topic.
This information is general and is not a policy or legal advice. Coverage, exclusions, limits and eligibility depend on the policy, insurer, state and your circumstances.