Cover employees from work-related accidents and illnesses with workers’ compensation insurance.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance is a type of business insurance that helps when an employee gets hurt or sick while doing their job. It pays for medical treatment, some of their lost wages, and, in some cases, disability benefits or death benefits if someone passes away because of a work-related injury.
If you’re a small business owner, having workers’ compensation insurance is often required by law. It also helps protect your company and shows your employees you care about their safety.
Do I Need Workers’ Comp Insurance in PA, VA, or MD?
Yes—most businesses do. But the rules are a little different in each state:
- Pennsylvania (PA): You need workers’ comp coverage if you have one or more employees, even if they’re part-time.
- Virginia (VA): If you have two or more workers, including family members or subcontractors, you must have coverage.
- Maryland (MD): Almost all businesses need workers’ compensation insurance. Even if you hire independent contractors or sole proprietors, you may need to cover them if they work in risky jobs.
To follow the rules, check your state laws or ask a licensed insurance agent.
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Pre-Hire Physical
Risk Factor
Are you about to hire your next workers' compensation claim? In an effort to get a position filled quickly, you may take shortcuts that could cost you thousands of dollars.
Solution
Prospective employees should be required to complete a pre-hire physical. A copy of the intended job description can then be given to the medical provider with the physical requirements of the position. This helps to ensure only those capable of doing the job are hired and keeps other employees safe.
Education and Injury Reporting
Risk Factor
Oftentimes employees don’t understand the workers' compensation process and may be afraid to report a claim for fear of losing their job or impacting a daily count of injury-free days that are tied to an incentive program.
Solution
Educate employees on the workers' compensation system. During the hiring process, consider explaining how workers' compensation coverage protects your employee when an injury occurs. Your employees should understand that it is their responsibility to report an injury immediately and follow the company’s guidelines for seeking medical attention. Explain your return to work policy and have your employees sign an agreement stating they understand the process.
Communication
Risk Factor
Your employee may become injured and you might be tempted to rely on someone else to communicate with them. As a result, your employee may be confused by the workers' compensation process and unsure where to turn.
Solution
You and your supervisors need to stay in constant communication with your employees. Your insurance broker can provide some coaching and guidance throughout the process. Above all, your employees should feel that you care about their injuries and that you will be involved in helping them recover. Your direct supervisors play a key role in this process and should be trained to effectively communicate with your employees throughout the injury.
Return to Work Program
Risk Factor
When your employees become injured, they may need time to recover. As an employer, you may be tempted to rely solely on the workers' compensation insurance company and/or your employee’s medical provider to communicate throughout the process. If you do, the process can become unnecessarily prolonged.
Solution
As the employer, let your insurance company and your employee’s medical provider know that you have a return to work program in place. Ask the medical provider to refer to the job description that has been provided for the injured employee. As soon as the employee is medically cleared, offer a light duty position and ask them to report to work. If needed, your employee can continue to receive treatment while they continue to recover.
Payroll Audits and EMR
Risk Factor
Statistically, your company’s Experience Modification Rate (EMR) has more than a 70% chance of being incorrect. Your EMR is a number used by insurance companies to gauge any past cost of injuries and future chances of risk. In addition, over 80% of payroll audits are done incorrectly. Both factors impact your workers' compensation coverage.
Solution
Trust your insurance advisor and have them assist and advocate during the annual payroll audit conducted by the insurance company. Your agent should also monitor all claims, but especially claims reserved over a $10,000 threshold. Larger claims should have a quarterly report prepared by your insurance agent to let you know the status of the claim. Your agent should work with your insurance company’s claims adjustor to close any claims as quickly as possible.
Medical Provider Communication
Risk Factor
Claims can remain open longer than needed due to poor communication between you and your employee’s medical provider. As a result, you may be unaware that your employee is well enough to return to work on a modified basis.
Solution
Get to know the doctors that are helping your employee heal. Your insurance broker should foster this relationship by assisting you in the selection of the medical provider prior to a claim. Meet with the medical provider, interview them, tour their facilities, ask them to tour your location, and explain your return to work program. Job descriptions can be provided to the medical provider and an agreement of services can be achieved. Once a claim takes place, a clear line of communication should be established so you are kept aware of your employee’s status.
Safety Training
Risk Factor
Sometimes employees are trained to do a job well, but are not trained to do their job safely. Many work-related injuries can be avoided by effective training.
Solution
Your insurance broker should be able to organize monthly training classes. Many insurance carriers offer training tools at no charge and your broker can help you utilize these tools to your advantage. For example, topics such as proper lifting techniques can be critical for many job functions. Also, using tools like payroll stuffers can be very effective.
OSHA Inspections
Risk Factor
Many employers are concerned about their next OSHA visit. Worried about citations and fines, employers see OSHA as the enemy. Sound familiar?
Solution
OSHA's On-site Consultation Program offers free and confidential safety and occupational health advice to small and medium-sized businesses in all states across the country, with priority given to high-hazard worksites. On-site Consultation services are separate from enforcement and do not result in penalties or citations. Consultants from state agencies or universities work with employers to identify workplace hazards, provide advice on compliance with OSHA standards, and assist in establishing injury and illness prevention programs.
Who Should Have Workers’ Compensation Insurance?
You should have workers’ comp insurance if you:
- Own a small business in Pennsylvania, Virginia, or Maryland
- Are self-employed or a sole proprietor and want extra protection
- Hire independent contractors or subcontractors
- Have family members or part-time workers on your team
- Work with clients who require proof of workers’ compensation coverage
Even if you’re not required to have it, this type of insurance coverage can protect your business and save you money in the long run. navigating business insurance coverage can be hard but a licensed insurance agent can walk you through the process.
What Does Workers’ Comp Insurance Cover?
A workers’ compensation policy can help pay for:
- Medical expenses like doctor visits and hospital stays
- Approved medical providers and follow-up care
- Some of the employee’s lost wages
- Disability benefits if the employee can’t work anymore
- Death benefits for the family if the injury leads to death
These workers’ compensation benefits come from a private insurance company, a state fund, or your own self-insurance program.
What Injuries Are Covered?
Covered injuries or illnesses may include:
- Slips, falls, or pulled muscles at work
- Getting hurt by tools or machines
- Burns, cuts, or broken bones
- Breathing problems or sickness from chemicals
- Car accidents while working
- Violence at work
- Occupational diseases that develop over time
How Do You File a Claim?
If an employee gets hurt:
- They must tell you right away.
- You file a workers’ compensation claim with your insurance carrier or state fund.
- The worker sees a doctor or medical provider that’s approved.
- They may receive money for lost wages and medical care.
Each state has its own rules and timelines, so act quickly and keep good records.
What About Self-Employed Workers?
In PA, VA, and MD, self-employed workers and sole proprietors don’t have to buy workers’ comp insurance—but it’s a good idea if:
- You work in risky jobs like roofing or construction
- You want to win big contracts that require coverage
- You want to be protected in case you get hurt
Are Part-Time Workers Covered?
Yes. Part-time workers are usually covered by workers’ comp insurance just like full-time workers. And in many states, part-time staff count toward the number of employees that makes coverage required.
How Much Does Workers’ Comp Insurance Cost?
The cost of workers’ compensation insurance depends on:
- What kind of work your employees do
- How many people you employ
- Your past workers’ compensation claims
- What state you’re in (PA, VA, or MD)
- Whether you use private insurance, a state fund, or self-insurance
For example, a roofer in Georgia will probably pay more than an office worker in Virginia because the job is more dangerous. The best way to find out is to get an insurance quote from a trusted insurance company.
How Can You Save Money on Workers’ Comp?
If you’re a small business owner, here are some ways to save:
- Create a workplace safety program
- Do safety checks and training often
- Get help from a professional insurance provider
- Bundle your policy with other types of insurance like general liability or a business owners policy (BOP)
- Check your job titles and employee list every year for accuracy
Why Is Workers’ Comp So Important?
Without workers’ compensation coverage, you could face:
- Big medical bills and legal fees
- Fines from the department of labor
- Lawsuits from injured workers
- A damaged reputation and loss of trust
Having the right insurance coverage protects your workers, your money, and your business’s future. Having a Business without the right Commercial Insurance policies can be risky General Liability Insurance protects your business during it’s everyday operations, Workers Comp Insurance is needed when you begin to hire employees, and a Commercial Umbrella is useful to protect your small business against lawsuits.
Other coverages:
Let’s Get Started
Workers’ Compensation Insurance Quote Request
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