What Is Workers Compensation?
Workers Compensation is a state-regulated coverage that responds when an employee is injured or becomes ill because of their job. In exchange for this coverage, employees generally give up the right to sue their employer directly for those injuries, which is why workers compensation is mandatory in most states once a business has employees.
Who Needs It
Nearly any business with W-2 employees needs workers compensation, and requirements can apply even with a single employee depending on the state. Businesses that use subcontractors without their own workers comp coverage may also need to account for those workers on their own policy.
Real-Life Claim Scenarios
Warehouse Worker Injures Back Lifting Boxes
An employee strains their back lifting heavy inventory. Workers compensation may help cover medical treatment and a portion of lost wages during recovery, subject to state benefit schedules.
Line Cook Suffers a Burn
A restaurant line cook is burned by hot oil during a dinner rush. Workers comp may help pay for medical treatment and time away from work.
Repetitive Motion Injury Over Time
An office employee develops carpal tunnel syndrome from years of repetitive computer work. Workers compensation may help cover the diagnosis, treatment, and any related wage replacement, subject to state rules.
Fall from a Ladder on a Job Site
A contractor's employee falls from a ladder while installing fixtures. Workers comp may help pay medical bills and provide partial wage replacement during recovery.
Employee Injury Leads to a Lawsuit
An injured employee's family alleges negligence beyond what workers comp benefits cover. Employer's liability coverage, generally packaged with workers compensation, may help with legal defense costs.
What It May Help Cover
- Medical expenses for work-related injuries and illnesses
- Partial lost wages during recovery, subject to state benefit limits
- Rehabilitation and retraining costs
- Death benefits to surviving dependents
- Employer's liability protection for related lawsuits
Coverage Limitations
Workers compensation benefit levels, waiting periods, and requirements are set by each state and vary accordingly. It does not cover independent contractors who carry their own coverage, and it is always subject to state statute and policy terms.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Total number of full-time and part-time employees
- Job classifications and duties for each employee group
- Annual payroll by classification
- States where employees work
- Experience modification factor (EMR), if available
- Prior workers compensation claims history
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to workers compensation? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Workers Compensation Quote
Tell us about your business and a Casurance specialist can help you review Travelers workers compensation options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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