Who Pays for Workers’ Compensation?

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Who Pays Workers’ Comp?

who pays for workers’ compensation Regardless of the state you’re in, employers pay for workers’ compensation insurance. Your cost for workers’ compensation is a percentage of your payroll. Unlike health insurance, there are no employee payroll deductions for workers’ compensation insurance.
Workers’ compensation provides benefits to your employees if they get sick from their work or injured on the job. Also known as workers’ comp or workman’s comp, this coverage is a type of business insurance. Your state may require you to carry workers' comp insurance.
As an employer, you can buy coverage through a:
  • State-run insurance program.
  • Private insurance company, like The Hartford.
Some states require employers pay for workers’ comp through a monopolistic state agency. Be sure to know what’s required in your state and how you can buy coverage.
For injured employees or workers with a work-related illness, workers’ compensation benefits help pay for:
  • Missed wages
  • Medical treatment
  • Ongoing care costs
  • Disability leave
Funeral costs may be covered by workers' compensation insurance, in the unfortunate event your employee passes away while working.

The Options for Who Pays for Workers’ Comp Are Important

who pays workers’ comp As a business owner, it’s important to partner with an insurance company you can count on. We have over 200 years of experience. We know the unique risks small businesses like you face. That’s why we created a small business insurance team to help propel businesses forward. Working with a private insurance company like The Hartford for your workers’ comp needs means you’ll get:
  • Customized insurance solutions that can be tailored to the needs of your business.
  • Personalized attention and service.
  • A claims management approach that helps return employees to work sooner.
  • Programs that can help keep your business and employees healthy.
  • Pricing flexibility and billing solutions that help you control your finances.

The Hartford Provides Workers’ Comp Insurance to Businesses Who Cannot Pay for Self-Insurance

Workers’ compensation regulations differ in every state. Most employers comply with state laws by buying workers’ comp coverage through private insurance carriers, like The Hartford. Our specialists can work with you to answer your questions and help you get the protection your business needs.
As workers’ comp costs rise, however, many large employers choose to self-insure. Self-insuring may allow an employer to reduce costs. Self-insured employers still comply with state workers’ comp regulations. The difference is these employers are responsible for paying their employees’ claims.

Paying for Workers’ Comp by Being Self-Insured Is Not That Simple

who pays for workers’ compensation insurance For larger companies that are self-insured, it doesn’t mean your workers’ comp process is easier. There are usually more parties involved because not many self-insured companies handle their own claims. They typically work with a third-party administrator (TPA) to handle paperwork and the workers’ comp process. They may also need to work with an attorney to ensure the company is following workers’ compensation laws.
If you’re a larger business planning to self-insure, we can still help you. Contact us today to learn more about how our team can help your business with its workers’ comp needs.

Have a Private Insurance Company Pay for Workers’ Compensation

Small business owners pay a premium to an insurance company for workers' comp coverage. The insurance company provides workers’ compensation insurance benefits to employees if they get hurt or sick from their job. Depending on the state you’re in, small business owners may choose to work with a private insurer rather than a state-run agency. With over 200 years of experience, we understand that every business has its own unique needs.
Get a quote today. You can also call 855-829-1683 to speak to one of our representatives.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
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