49 U.S. states require employers to carry workers compensation insurance in case an employee gets injured on the job. Don’t let an accident trip you up — meet legal requirements and stay prepared for workplace accidents with affordable coverage from Insurance Canopy!
Workers compensation insurance provides medical and disability benefits to workers (aka employees of a business) who suffer from an injury or become ill due to a work-related incident.
This coverage is considered a “no-fault” policy because employees do not have to prove that their employer was at fault or negligent to receive compensation. Even if the employee’s own actions led to their injury, they are still covered under a workers compensation insurance policy.
Workers compensation insurance is mandatory for most employers in all states except Texas to cover employment-related injuries, illness, or disease.
Because each state has its own requirements, check with your state’s Department of Labor to see what the workers compensation insurance requirements are for your business. For example, some states require any business with at least one employee to carry this coverage, while others only require it if you have five or more.
Workers compensation insurance covers costs associated with work-related illnesses and injuries. These expenses often include:
Typically, workers compensation policies will not cover the following:
While these are common exclusions, please note that they may differ from your policy. Please refer to your policy for actual coverages, limitations, and exclusions.
In general, anyone with at least one employee should carry a workers compensation policy, including part-time and seasonal employees. However, exact requirements differ by state.
For example, Texas does not require private employers to carry workers compensation coverage. In contrast, Florida requires it for construction companies with at least one employee and non-construction companies with four or more employees.
Understanding your state requirements for self-employed individuals, volunteers, interns, and independent contractors is vital. Penalties for violating these requirements carry hefty fines and legal action that can place a financial strain on your business.
Professionals who may need workers compensation insurance include but are not limited to:
Don’t see your business or industry here? Find out more about the types of businesses Insurance Canopy insures.
A woman working in a job that involved heavy lifting injured her lower back while carrying a box, which required expensive surgery. Total payout: $1,016,944
A tile setter who ran his own business suffered a back injury on the job that led to multiple different medical treatments and evaluations. Total payout: $490,000
An employee was seriously injured in a car accident while driving for work, which resulted in hospital stays and medical treatment. Total estimated payout: $89,000
The median cost of workers compensation insurance from Insurance Canopy is $1,255 per year, but this number can vary greatly depending on the following factors:
Work-related injuries are a risk most businesses need to be ready for, but they aren’t the only claims you can face. To properly shield your finances from the impact of accidents ranging from third-party injuries to defamation suits, we offer several essential small business insurance coverage coverage options:
You don’t even have to leave the house to get your free workers compensation insurance quote from Insurance Canopy. Fill out our online application with all the required information about your business and we’ll send your quote right to your email inbox!
To speed up your application process, make sure you have this information at the ready:
With Insurance Canopy, you get A+ rated insurance at an affordable price, meaning you don’t have to pay an arm and a leg for the coverage you need. See what our customers have to say about us!
Thank you so much
Steve MonrealI needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie CalawayVery easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert EarnestI am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pachecogreat little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje AngellWhat a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha RusanovNeeded DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay SolisVery user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael RileyWould have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony BurgessRepresentative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiamVery easy to renew policy
Elyce NissinoffThey can help.you with the right Insurance you need, and the lowest price
Alvaro BaltazarProvides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David FoxAffordable for dance & yoga folk. Thumbs up!
Maia ClaireExtremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvineverything is excellent
Radames MartinezI'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew TerryFor me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly MulderAffordable. Thank you.
Ana YoungI have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John CorkinsCanopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧
DjVic Universal SoundsI have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice LapointeGreat for Event Insurance - most affordable
Gaby NobregaI was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTEROTLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed LevittAs a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie WilliamsThis insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony FelixRepresentative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John BI’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeonThank you so much
Steve MonrealVery easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert EarnestI needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie CalawayI am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pachecogreat little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje AngellRepresentative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiamWhat a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha RusanovNeeded DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay SolisVery user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael RileyWould have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony BurgessYou can purchase a workers compensation policy from us if you live in any state except North Dakota, Ohio, Washington, and Wyoming. If you live in one of these four states, you are not allowed to get this coverage from a private insurer and must purchase it from a state fund instead.
To file a workers compensation claim, document the incident in an injury report and file a claim by following these steps:
Injured employees are often legally required to report workplace injuries within a certain timeframe (usually 24–72 hours).
You may also be required to use state-specific workers compensation claims forms and posting notices. Refer to your state for these requirements.
If you are self-employed with no employees or uninsured independent contractors, you may not need workers compensation insurance, depending on the state where you live. Always check your state laws for exact requirements.
Independent contractors are generally not covered under your workers compensation policy. Typically, there needs to be an employer-employee relationship for someone to be eligible for coverage.
However, if the independent contractor does not meet the definition of an “independent contractor” or doesn’t carry their own workers compensation coverage, you could be liable for their work-related injury or illness.
Some of the benefits available to employees under a workers compensation policy include:
Additionally, if an employee dies on the job, their spouse and/or dependents can receive financial compensation for funeral/burial costs as well as loss of companionship (aka loss of consortium).
If you have employees working in other states, notify your insurance carrier. These states will need to be added to your policy’s declaration page.
If employees work temporarily in another state, your existing workers compensation policy may automatically provide coverage for a work-related injury. “Other State Insurance” provisions are designed to provide coverage for employees working in states not specifically listed in your policy.
Always refer to your policy or speak with your insurance carrier to confirm the scope of your coverage.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.
Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.
