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What is Worker’s Compensation Insurance?

I don't safety standards allow this anymore!

I don’t safety standards allow this anymore!




Here is a brief introduction into Worker’s Compensation Insurance

Q.  What is Worker’s Compensation Insurance?

A.  Everyone who owns a business with even a single part-time employee needs Worker’s Comp!  Worker’s Comp is an amazing product that essentially voids an employee’s ability to sue an employer for negligence/liability in the event of a workplace injury.  It provides a stated limit of liability for employer negligence and unlimited coverage for covered workplace injury treatment.  If an employer doesn’t have Worker’s Comp they are risking their business.  Absent coverage employees may directly sue their employer.  Everything from keyboard induced Carpel Tunnel Syndrome to catastrophic accidents are covered.

Q.  How does my payroll affect Worker’s Compensation Insurance?

A.  Worker’s Comp is priced based on payroll.  There are controls that put caps on owner/officer payroll.  The higher the payroll, the more expensive the policy and visa versa.  Policies can be set-up where payroll is reported monthly or where payroll is audited annually.  Either way, the insurance company works with the business to make sure that the proper payroll is reported and charged for.

Q.  Can I get Worker’s Compensation coverage if I have no employees?  

A.  Yes.  Worker’s Compensation is available for “Owner Only” type businesses.  Unfortunately, the market for such coverage is somewhat narrow.

Q.  What are the Benefits of Worker’s Compensation Insurance?

A.  The benefits of Worker’s Compensation are several.  First, businesses can effectively protect themselves from lawsuits by injured employees.  Second, owners can promise employees that if they’re hurt on the job their treatments will be paid for as long as they’re necessary.  Third, when bidding on many contracts or simply putting out a company résumé for review a comprehensive risk management portfolio can be very legitimizing for any organization

Here is an interesting article published by the Florida Division of Worker’s Compensation on the history of worker’s comp and that sate of it today in Florida.


About the Author

Jason Levine

Jason received a Masters of Science & Management in Risk Management & Insurance from Florida State University. He has been with Harry Levine Insurance for 9 years and handles the leadership of daily operations. He was the 2013-2014 Florida Association of Insurance Agents Young Agent Council's Agent of the Year. Currently serves on FAIA Board of Directors.

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