Workers’ Compensation Insurance
For most businesses, insurance for workers’ compensation is mandatory coverage for medical expenses and lost wages for employees injured on the job. Paychex Insurance Agency can help you find compliant coverage and stabilize your business cash flow. As a top 100 insurance agency*, we're your single stop for property and casualty insurance, health and benefits, and benefits administration.
Manage Workplace Injury and Productivity With Workers’ Comp Insurance
Injuries and illness on the job can happen at any time, even if you have employees working from home. An increase in workers’ compensation claims and decline in productivity can severely impact your bottom line.
Consider that in 2020:
- More than 2.7 million workplace injuries and illnesses were reported by private industry employers
- More than 888,000 cases involved days away from work
Source: Employer-Reported Workplace Injury and Illness, U.S. Bureau of Labor Statistics, 2020
What Are the Workers' Compensation Mandates in Your State?
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What's Included in Our Workers' Compensation Coverage
Assessment of Your Specific Needs
We want you to have workers' comp coverage that's just right, which is why we perform an initial assessment to make sure all businesses — from small to enterprise — are fully covered.
Workers’ Compensation Coverage Renewal at No Additional Cost
Keep the cost of your workers’ comp insurance policy in check by renewing your coverage each year, with no additional deposits or payments required to continue our payment service.
The Right Workers’ Compensation Insurance Policy at the Best Price
Licensed Paychex Insurance Agency agents find the best coverage options and deliver a complete insurance plan at competitive pricing.
Monthly Reports Detailing Total Insurance Expenses
Easily accessible monthly and year-end reports that demonstrate exactly where you stand with wages, payments, and deductions.
Predictable Premiums To Protect Cash Flow
Integrating your workers' compensation policy with Paychex payroll greatly reduces your risk of big down payments, surprise premiums, financing fees, and balloon payments that otherwise impact your cash flow.
Help Protect You and Your Business From Unexpected Risks
Get Help Developing a World-Class Safety Program
Create and maintain a safe work environment with help from our off-site risk management team, including experienced underwriters, loss control specialists, and claims managers, who can:
- Answer questions and direct or authorize initial medical treatment
- Educate injured workers regarding medical and replacement income benefits
- Provide the insurance company with wage information to ensure timely payment of lost wages and provision of medical treatment
- Assist with return-to-work coordination
Work With Top Workers’ Compensation Insurance Carriers
Our licensed agents can help you select a workers’ compensation insurance plan from top-tier national carriers, while our integrated Workers’ Compensation Payment Service** can give you a smarter, more cost-effective means to manage your policy.
Restaurant Orders Up a Pay-as-You-Go Workers' Compensation Plan
Finding a way to control costs can be as simple as working with an expert who understands where you can save money. Lago 210 owners Audrey and Jordan Zybala began using Paychex's pay-as-you-go workers' compensation plan and discovered that they could budget and track that expense more easily.
"I found out very early on that when you don't have an eye on (your workers' compensation expenses) throughout the year that it can add up, and then when you have an audit at the end of the year, (the cost) can be very difficult for a small business."
Workers’ Compensation FAQ
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What Is Workers’ Compensation Insurance?
What Is Workers’ Compensation Insurance?
Workers' compensation provides replacement wages and medical benefits to employees who are injured on the job in exchange for relinquishing the employee's right to sue their employer for negligence. Learn more about workers’ compensation policies.
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What Does Workers’ Comp Cover?
What Does Workers’ Comp Cover?
This insurance provides benefits to employees who are injured or get sick from a work-related situation. Workers' comp also includes disability benefits, wage replacement, and death benefits. For employers, workers’ comp reduces their liability for work-related injuries and illnesses. Without this coverage, your employees can sue for their medical costs and lost wages stemming from a work-related injury or illness.
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What Is Not Covered by Workers’ Compensation Insurance?
What Is Not Covered by Workers’ Compensation Insurance?
A workers’ comp policy doesn’t cover an employee who intentionally causes a workplace injury or illness. A policy also doesn’t cover illegal acts committed that result in an injury or illness. Other circumstances, such as when an employee is commuting to and from work, are generally not covered under this insurance. Check your policy for specifics about what is and isn’t covered.
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Why Do I Need Workers’ Compensation Insurance?
Why Do I Need Workers’ Compensation Insurance?
Most states require businesses with employees to carry workers’ compensation to provide benefits to employees for work-related injuries or illnesses. Beyond offering employees health insurance, which doesn’t cover work-related injuries or illnesses, businesses need workers’ compensation to protect injured employees and cover these claims. It will also protect your business from lawsuits and help keep your business compliant with state regulations.
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How Much Does Workers’ Compensation Insurance Cost?
How Much Does Workers’ Compensation Insurance Cost?
Workers’ compensation insurance cost varies based on the business size, its location, its industry, and its specific claims history. Also, workers’ comp rates and requirements vary from state to state. In general, for every $100,000 in payroll, the average workers’ compensation policy ranges from a few hundred dollars to a few thousand dollars per year. At Paychex, our Workers’ Compensation Payment Service can help offset end-of-year payments by basing your premiums on actual wages, not estimates.
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Does a Small Business Need Workers’ Comp Insurance?
Does a Small Business Need Workers’ Comp Insurance?
Most likely yes. In nearly every state workers’ comp is required, even if a business has just one employee.
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How Much Is Workers’ Comp Insurance for Small Businesses?
How Much Is Workers’ Comp Insurance for Small Businesses?
The cost for workers’ comp coverage will vary based on your unique business, including how much you issue in payroll, where your business operates, industry, and claims history. For instance, small business workers’ comp insurance premiums may be lower if most employees work at a desk all day, but may be higher if the small business is in the construction or landscaping industry.
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Who Pays for Workers’ Compensation?
Who Pays for Workers’ Compensation?
A workers’ comp insurance policy is paid entirely by employers. Premiums are based on a percentage of the business’s payroll.
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What Are Workers’ Compensation Benefits?
What Are Workers’ Compensation Benefits?
Workers’ comp benefits are employee compensation and/or benefits for medical care, wage replacement, rehabilitation, and other assistance as a direct result of injury or illness while on the job (see question below for specifics). Each state determines the amount and duration of worker compensation benefits and how they are administered.
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What Are the Four Types of Workers’ Compensation?
What Are the Four Types of Workers’ Compensation?
According to the U.S. Department of Labor, the four main types of workers’ compensation programs are:
- Wage replacement benefits: Also known as disability benefits, wage replacement covers a percentage of the employee’s wages if they are unable to return to work temporarily or permanently.
- Medical treatment: The costs for all treatments related to the employee’s workplace injury or disability.
- Vocational rehabilitation: Assistance to help employees who have been injured or disabled to return to work, including training, career counseling, and assistance finding a new job.
- Other benefits: Includes death benefits paid to families if the employee dies from injury or illness.
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How Does Workers’ Comp Work?
How Does Workers’ Comp Work?
In general, if an employee experiences a work-related injury or illness, the process includes the following steps:
- The employee communicates to HR about the injury or illness, and fills out an incident report. Depending on the state, the employee may only have a certain number of days to do this.
- The employee visits a doctor or hospital, where a doctor will fill out and send a medical report to the employer.
- The employee files a workers’ comp claim, including any applicable medical history and treatment documentation.
- Once a claim is processed, the employee begins receiving payments and other benefits from the insurance provider. How much workers’ comp pays the employee is based on your policy and coverage.
- You as the employer can dispute a workers’ compensation claim if you believe the injury or illness wasn’t work-related. This requires appearing before a panel or workers’ comp agency, which will issue a final decision.
- If an employee needs time off following a work-related illness or injury, they can return to their job or a comparable position.
- Employees may be able to work part-time while still receiving partial compensation as part of the transition back to work.
- You are responsible for changing workplace policies or procedures to prevent similar illnesses or injuries from happening in the future.
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How Much Is Workers’ Comp Insurance for Contractors?
How Much Is Workers’ Comp Insurance for Contractors?
If you’re self-employed or a sole proprietor, check to see if your state requires you to carry workers’ comp coverage. Insurance premiums will vary based on factors such as your location, earnings, claims history, and job classification.
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Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?
Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?
States outline their own exclusions from workers’ compensation coverage, but generally contractors, freelancers, and volunteers aren’t automatically covered.
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Is It Illegal Not To Have Workers’ Comp Insurance?
Is It Illegal Not To Have Workers’ Comp Insurance?
If your state requires you to carry insurance for workers’ compensation and your business doesn’t have it, you could be subject to costly penalties, which vary from state to state, or even jail time. Beyond workers’ compensation laws, it’s still a good idea to secure a workers’ comp insurance policy to protect you, your business, and your employees.
Manage Risk With More Confidence
Secure important protection for your business and employees with our workers’ comp coverage.
Business Insurance To Meet Your Needs
Paychex Insurance Agency offers a wide range of business insurance policies to help protect your business and employees from costly claims and losses.
Errors and Omissions
Protect against actionable mistakes by employees or contractors.
