Workers Compensation

What is Workers Compensation?

Workers Compensation is insurance that covers medical expenses and part of lost wages when an employee is injured or becomes ill because of their job. In return, it protects your business from employee lawsuits over that injury.

It is a dual-protection insurance: it takes care of your workers in a hard moment and, at the same time, shields your company financially and legally. In most states it is required by law.

What does Workers Comp cover?

The policy covers the costs arising from a work-related injury or illness:

• Medical expenses: visits, hospital, surgeries, and medications related to the injury.
• Lost wages: part of the salary while the employee recovers and cannot work.
• Rehabilitation: physical therapy and training to return to work.
• Disability benefits: payments if the injury causes partial or total disability.
• Death benefits: support for the family if the employee dies from a work accident.

Is it mandatory? Rules by state

In most states, Workers Comp is mandatory above a certain number of employees. In Georgia, for example, it is required for businesses with 3 or more employees. Penalties for not having it are severe: fines, business closure, and even personal liability for the owner.

Since requirements vary by state and business type, it is best to confirm your obligation with an agent. At TOP Insurance we tell you exactly what you need based on your state.

How is the price calculated?

The Workers Comp premium is based mainly on your payroll and the risk of each role. Key factors are:

• Your total payroll.
• The type of work and its risk classification (a construction worker costs more than an office worker).
• Your claims history (experience mod).
• The state where you operate and its regulations.

Why it protects your business, not just employees

Without Workers Comp, an injured employee could sue you directly, and medical and legal costs could come out of your pocket. With the policy, the employee receives care and benefits, and you are protected from those lawsuits. Also, many contracts and business licenses require proof of Workers Comp.