Who Pays Workers’ Comp?
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:
Ongoing care costs
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
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
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.