Workers’ compensation is a no-fault system: employees hurt in the course of their work get medical treatment and partial wage replacement, and in exchange the employer is generally protected from being sued over the injury.
Requirements are set state by state. Some states require coverage starting with your first employee; others start at a headcount threshold or treat construction differently. Texas lets most private employers opt out, and Ohio requires coverage through its state fund rather than private carriers. We will confirm what applies to your operation.
What Workers’ Compensation typically covers
- Medical care. Doctor visits, hospital care, surgery, therapy, and prescriptions for a covered work injury or illness.
- Lost wages. Partial wage replacement while an employee cannot work, according to your state’s benefit schedule.
- Rehabilitation and return to work. Vocational help and transitional duty programs that get people back on the job.
- Death benefits. Benefits to dependents if a work injury is fatal.
- Employers liability. Part two of the policy: defense and payment if the business is sued over a work injury in situations the comp system does not fully address.
A landscaping crew member slips from a retaining wall and breaks his wrist. Workers’ comp pays his medical bills and a portion of his wages during six weeks of recovery, and the employer avoids a lawsuit over the injury.
Businesses that commonly carry Workers’ Compensation
- Any employer with W-2 employees (subject to your state’s rules)
- Construction and trade contractors — often required at lower headcounts
- Businesses that hire subcontractors who lack their own coverage
- Employers bidding on contracts that require proof of comp
- Owners who want coverage for themselves (where elections allow)
- Seasonal and part-time employers
What it usually does not cover
- Truly independent contractors. People who are genuinely independent are not covered — but misclassifying employees as contractors is a common, expensive audit surprise.
- Commuting. Normal travel to and from work is generally not covered.
- Intoxication or willful misconduct. Many states limit or deny benefits for injuries caused by intoxication, horseplay, or intentional self-injury.
- Owners who opt out. In some states officers or members may elect to exclude themselves; if they do, their own injuries are not covered.
- Ohio and other state-fund rules. In Ohio, private carriers cannot write workers’ comp — coverage comes through the Ohio Bureau of Workers’ Compensation.
- Liability to non-employees. Customer injuries belong to general liability.
Independent means we compare — not just quote one company
Workers’ compensation markets we can shop include Next and, in Kentucky, KEMI and The Hartford. Options differ by state and class code; we will tell you up front which carriers want your class.
Tips before you buy
- Premium is based on payroll by class code and your experience mod — accurate estimates prevent big audit bills.
- Expect a payroll audit after the policy year. Keep certificates for any subcontractors you pay.
- Ask about pay-as-you-go billing, which ties premium to actual payroll each pay period.
- Construction owners: ask whether an officer exemption fits your state and situation — and understand what you give up.
Coverage that pairs with Workers’ Compensation
General Liability
Third-party injury, property damage, and advertising injury claims — plus defense costs.
Learn moreBusiness Owners Policy (BOP)
Liability + property + business income in one package for eligible small businesses.
Learn moreCommercial Auto
Work trucks, vans, and fleets — liability, physical damage, and hired & non-owned auto.
Learn moreCommercial Umbrella
Extra liability limits above your GL, auto, and employers liability policies.
Learn morePopular with: Contractors & Trades · Landscaping & Lawn Care · Restaurants & Food Service · Professional & Medical Offices · All commercial coverage
Workers’ Compensation questions
When do I need workers’ comp?
It depends on the state, your industry, and how many employees you have. For example, Florida generally requires construction businesses to carry it with even one employee and most other businesses at four, while Kentucky generally requires it once you have one employee, with limited exemptions. Tell us your state and headcount and we will confirm the current rules.
How is workers’ comp priced?
Mainly by payroll in each job classification, multiplied by a rate for that class, then adjusted by your claims experience (the experience mod) and carrier credits.
What is a workers’ comp audit?
After the policy year, the carrier reviews actual payroll and subcontractor costs. If payroll was higher than estimated, you owe additional premium; if lower, you may get a refund.
Do I need to cover subcontractors?
If a subcontractor does not carry their own workers’ comp, their workers can be treated as yours at audit. Always collect current certificates from subs.
Can I cover myself as the owner?
In many states owners can choose to be included or excluded, depending on entity type and industry. We will explain the options and trade-offs for your state.
We cover your assets
Let’s build the right commercial program
Tell us about your business once. We shop multiple carriers, explain the trade-offs in plain English, and handle certificates, audits, and renewals after you bind.
Educational only — not a policy, quote, or coverage guarantee. Coverage, eligibility, and carrier availability vary by state, class of business, and underwriting. Policy language controls. Talk with a licensed Asshield agent about your situation.