What is Workers' Compensation Insurance?

Workers' compensation insurance covers employee's fro work-related injuries. Benefits include medical expense payments and short-term compensation to an employees unable to work due to a work-related injury..

Workers' Compensation Insurance is a no-fault system, meaning, an employee still receives benefits even if the employee caused the injury while at work. In other words, the main eligibility requirement for collection of benefits is that the injury was work-related.

Who is Required to Carry Workers' Compensation Insurance?

State law requires businesses with employees to carry workers' compensation insurance. Workers' compensation insurance may not be required for officer/shareholders of corporations in some states.

Self-Employed Persons

Since self-employed persons, such as sole proprietors and general partners, are not considered employees of the business, they are not eligible for Workers' Compensation Insurance. However, some states allow sole proprietors to opt in to a similar program.

Insurance premiums vary depending on the degree of risk associated with each employee's job. Jobs that pose a higher degree of risk for physical injury, such as working with machinery, will require a higher premium than jobs with a lower risk, such as office workers.

Check with your state.

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