WORKERS COMPENSATION INSURANCE

Statutory protection for employees and employers

Workers’ Compensation insurance provides wage replacement, medical benefits, and related support to employees who suffer job-related injuries or occupational illnesses. In exchange, it generally limits an employee’s ability to sue the employer for workplace injuries.

Unlike most other coverages, Workers’ Compensation is governed by state law, and requirements vary significantly across jurisdictions.

What Workers’ Compensation Insurance Covers

Workers’ Compensation typically provides:

Medical Benefits
Coverage for medical treatment, rehabilitation, and ongoing care related to work-related injuries or illnesses.

Lost Wages
Partial wage replacement for employees unable to work due to a covered injury.

Disability Benefits
Temporary or permanent disability benefits, depending on the severity of the injury.

Employer’s Liability
Protection for employers against certain lawsuits not barred by workers’ compensation statutes.

Coverage applies regardless of fault and begins as soon as an employee is injured in the course of employment.

What It Does Not Cover

Workers’ Compensation generally does not cover:

• Independent contractors not legally considered employees

• Injuries occurring outside the course and scope of employment

• Intentional self-inflicted injuries

• Claims involving intoxication or criminal activity

• Non-work-related illnesses

Coverage determinations are based on statutory definitions and case law.

Who Is Required to Carry Workers’ Compensation?

Most states require employers to carry Workers’ Compensation once they hire employees. Requirements vary by:

• State

• Number of employees

• Type of business

• Ownership structure

Some states require coverage for owners and officers, while others allow exemptions or elections.

Failure to maintain proper coverage can result in fines, penalties, stop-work orders, and personal liability.

How Coverage Is Structured

Workers’ Compensation policies are issued on an annual basis and are subject to:

• Employee classification codes

• Estimated payroll

• State-specific rates and rules

• Experience modification factors

• Premium audits at policy expiration

Premiums are adjusted after audit to reflect actual payroll and operations.

Real-World Claim Examples

• An employee is injured while lifting equipment

• A worker develops a repetitive-motion injury

• A slip, fall, or equipment-related accident occurs on the job

• An employee requires time off work due to a work-related illness

Even minor injuries can lead to significant medical and wage costs.

Why Proper Placement Matters

Workers’ Compensation is one of the most frequently misclassified lines of insurance. Common issues include:

• Incorrect class codes

• Misclassification of owners or subcontractors

• Underestimated payroll

• Inadequate state coverage

These errors often surface during audits — when it’s too late to fix them.

Our Approach

At Cory Washington & Co., we take a proactive approach to Workers’ Compensation. We focus on proper classification, compliance with state law, and audit preparedness — not just issuing a policy.

Our goal is to protect your employees while safeguarding your business from unnecessary costs and regulatory exposure.

Disclaimer

All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.