Workers' Compensation

Workers' compensation protects your employees should an injury occur during the course of employment. Payments are made to the injured party and can consist of medical payments, loss of wages, or therapy. All states require that all employers carry workers' compensation insurance and each state has individual laws that must be met. At the very minimum, workers' compensation insurance policies will cover an employee's medical expenses and reimburse him or her for some percentage of lost wages. Almost all states are "open market," which means the coverage is underwritten by private insurers; and some states are "closed" or "monopolistic" where the coverage is underwritten by a state-sponsored fund (North Dakota, Ohio, Washington, West Virginia, Wyoming). In states that are open, rates can vary between insurance carriers depending on the type of business the carrier is attempting to attract. In an open market, the rates are competitive.