What is Workers Compensation Insurance?

Insurance

Jim Moriarty

Senior Insurance Services Advisor and Senior Vice President
Jim.Moriarty@ebtc.com
978-656-5594

Workers compensation insurance, often known as “workers comp,” can help provide your employees the benefits they need if they suffer a work-related injury or illness. Most states require that businesses carry workers comp insurance.

Each state is in charge of its own workers’ compensation program. If your business operates in multiple states, you may be dealing with multiple sets of rules.

Each state sets:

  • Rates
  • Benefit amounts and how long they will be paid
  • Record keeping and reporting requirements
  • Types of injuries, illnesses, and impairments that are covered
  • How impairments are to be evaluated and how medical care is delivered
  • How claims are handled and how benefits and are provided
  • Specific exemptions to workers comp requirements such as size of business or type or work performed

If your employee is injured on the job or while acting on your behalf, workers comp can help protect your business by:

  • Limiting your business’ liability in lawsuits for work-related injuries or illnesses
  • Providing benefits to your employees that have work-related injuries or certain illnesses or occupational diseases
  • Helping injured employees get back to work in their old role or a new one

Workers compensation insurance can protect your employees by providing:

  • Medical care
  • Compensation for a portion of the income lost while unable to return to work
  • Help getting back to work in their old role or a new one
  • Death benefits to the worker’s dependents if the worker was killed while working 

Workers compensation insurance does not cover an injury or illness that:

  • Happens in a fight your employee caused
  • Is intentionally caused by your employee
  • Happens to an employee who is intoxicated
  • Is emotional and has no physical trauma
  • Takes place during your employee’s commute

To learn more about business property insurance and casualty insurance available through Enterprise Insurance Services* we invite you to contact us at 978-656-5594 or 877-671-2265.

*All insurance policies offered by Enterprise Insurance Services are placed through our partner, HUB International NE, LLC. Insurance products are not deposit products, not FDIC insured, not guaranteed by Enterprise Bank, not insured by any government agency, and may lose value.

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