Workers' comp insurance

Workers' compensation insurance provides benefits to employees who are injured or become ill as a result of their job. It covers medical bills, lost wages, rehabilitation costs, and death benefits.

19 steps across 5 sections

1. Monopolistic (State-Fund-Only) States

  • North Dakota — Workforce Safety & Insurance
  • Ohio — Ohio Bureau of Workers' Compensation
  • Washington — Washington State Department of Labor & Industries
  • Wyoming — Wyoming Workers' Safety and Compensation Division

2. Average Costs

  • National average: approximately $1.19 per $100 of payroll (varies significantly)
  • Low-risk office work: $0.15 - $0.40 per $100
  • Moderate-risk retail/service: $0.50 - $2.00 per $100
  • High-risk construction: $5.00 - $40.00+ per $100
  • Annual cost for small business: typically $500 - $5,000/year for small, low-risk businesses

3. Private Insurance

  • Available in 46 states (all except the 4 monopolistic states)
  • Shop through insurance agents/brokers, directly from carriers, or online
  • Major carriers: The Hartford, Travelers, AmTrust, EMPLOYERS, biBERK, State Farm

4. State Funds

  • Monopolistic states (ND, OH, WA, WY): must purchase through the state fund
  • Competitive state funds: states like CA, CO, NY, PA offer a state fund as one option alongside private carriers
  • State funds are often the insurer of last resort for high-risk employers

5. Self-Insurance

  • Large employers can apply to self-insure in most states
  • Requires financial qualification and approval from the state
  • Must post a surety bond or other security
  • Not practical for small businesses

Sources

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