Workers' Compensation
Helping businesses protect their employees and navigate workplace injury risks.
EMD INSURANCE RESOURCES
What Is Workers' Compensation Insurance?
Workers' compensation insurance helps provide benefits to eligible employees who suffer injuries or occupational illnesses arising out of their work. Depending on state law and policy terms, benefits may include medical treatment, partial wage replacement, rehabilitation, and certain death benefits.
Medical Benefits
Workers' compensation may pay for authorized medical care related to a compensable work injury or occupational illness, subject to applicable state rules.
Lost-Wage Benefits
Eligible employees who cannot work, or whose ability to work is reduced, may receive a portion of their wages under state benefit rules and waiting periods.
Disability & Rehabilitation
Benefits may address temporary or permanent disability and certain rehabilitation needs when a covered injury affects an employee's ability to return to work.
Survivor Benefits
When a compensable workplace injury or illness results in death, state workers' compensation systems may provide specified benefits to eligible dependents.
Employers Liability
Many standard workers' compensation policies also include Employers Liability coverage for certain employee-injury lawsuits outside the exclusive workers' compensation remedy. Its limits, exclusions, and application should be reviewed separately.
STATE REQUIREMENTS
When Is Workers' Compensation Required?
Requirements vary by state, industry, employee count, ownership structure, and other factors. Construction businesses may face different rules than non-construction businesses.
Florida Businesses
Florida generally requires workers' compensation for construction employers with one or more employees and for non-construction employers with four or more employees. Agricultural employers have separate thresholds. Officer exemptions, subcontractor relationships, and other exceptions require careful review under Florida law.
Texas Businesses
Most private Texas employers are not generally required by state law to carry workers' compensation, although exceptions apply, including certain government contracts. Employers who do not subscribe to workers' compensation have separate legal obligations and potential liability exposures.
Contract Requirements
Even when a state does not otherwise require coverage, a customer, general contractor, property owner, or government agency may require workers' compensation as a condition of a contract.
KNOW THE LIMITS
What Workers' Compensation May Not Cover
Workers' compensation is not a substitute for every type of business insurance. Coverage depends on state law, employment status, and the policy.
Customer Injuries or Property Damage
Claims by customers and other third parties generally belong under General Liability or another applicable liability policy, not workers' compensation.
Independent Contractors & Subcontractors
Calling someone a 1099 contractor does not automatically determine their status for workers' compensation. Uninsured subcontractors can create significant exposure, especially in construction.
Owners and Officers
Whether business owners and corporate officers are included, may elect coverage, or may qualify for an exemption depends on the state and business structure. An exemption is not itself an insurance policy.
Non-Work-Related Conditions
Injuries and illnesses that do not meet the applicable legal requirements for a compensable work-related claim generally are not covered.
UNDERWRITING BASICS
What Information Helps Determine Your Premium?
Workers' compensation premiums often depend on payroll, job duties and classifications, state rating rules, and claims experience. Insurers may also review subcontractor costs, prior coverage, and safety practices. Premiums can be adjusted after an audit of actual exposures.
Payroll & Job Classifications
Provide estimated annual payroll by employee role and a clear description of the work performed. Different job duties may carry different classification rates.
Subcontractor Information
Be prepared to discuss subcontracted work and provide certificates or other evidence of coverage when requested. Uninsured subcontractor costs may affect audits and premiums under applicable rules.
Prior Coverage & Claims
Carriers may request prior policy information, loss history, and details of any coverage gaps. Accurate information helps avoid unexpected underwriting or audit issues.
EXPLORE YOUR COVERAGE
Not Sure What Other Coverage Your Business May Need?
Workers' compensation is one part of a broader insurance program. Explore other coverage types that may fit your operations.
Have an Insurance Question?
Resources are a great place to start. When you're ready to discuss your specific insurance needs, EMD Insurance Solutions is here to help.