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Workers' Compensation

Workers’ compensation provides medical expenses, lost wages, and rehabilitation costs to employees who are injured or become ill on the job. It also pays death benefits to families of employees who are killed on the job. The coverage is mandated by each state and the wage and medical benefits vary by state.

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Workers' Compensation

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CLEAR Insurance provides a single point of contact for clear, understandable and unbiased recommendations for all your insurance needs. Whether in the area of commercial coverages for a business or in personal coverage, the CLEAR Insurance team is here to help you protect what matters most.

Who is required to carry workers' compensation insurance?

All states, other than Texas, require businesses with employees who are not owners, to purchase and maintain workers’ compensation coverage for those employees.

The Independent Contractor Exception

In most states, only regular employees are eligible for workers' compensation, not independent contractors. Check with an agent to learn your state workers’ comp agency to determine their position on workers’ comp coverage for independent contractors.

What if my business does not provide workers' compensation insurance?

Businesses that fail to provide workers’ compensation coverage can face severe and costly repercussions including payment of claims out of pocket, fines and possible imprisonment, as well as possibly losing the right to conduct business in the state.

Do business owners without employees need to buy workers' compensation insurance?

That depends on your ownership status and the customers or clients that you work for.

If you’re a sole proprietor, partner, or LLC member in a firm with no employees, you (and all the other owners) can apply for the workers’ comp exemption that applies to your ownership status.

Your customers or clients may ask to see your workers' compensation certificate before hiring you to do business. If you don’t have coverage and you get injured while working for a customer or client, they might be liable for your medical expenses. Similarly, if you hire independent contractors and they don’t have their own workers’ comp coverage – and you don’t either – your customer might wind up being liable for worker injuries.

Who does workers' compensation cover?

Both employees and employers are covered and have benefits provided to them.

  • Salary Replacement
  • Healthcare Cost Reimbursement
  • Survivor Benefits
  • Recipients Wave the Right to Sue

Types of incidents where workman's compensation insurance would not provide coverage?
  • Benefits can be denied if blood/alcohol tests reveal the employee was under the influence at the time of the injury
  • Self-inflicted injuries
  • The employee was violating a law or company policy
  • The employee was not on the job at the time of the injury
How much does workers' compensation insurance cost?

Insurance rates and premiums can vary by state and various factors, which may include:

  • The industry your business is in
  • The number of employees you have
  • The safety record of your business
  • The size of your payroll

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