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 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!
TLJ'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 gedeonSuper easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana ZavalaI needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan TedescoGreat coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve BryantWas waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad LaiblyGreat and affordable insurance
Peter DAntoniBeing a caricaturist, I never understood why I needed liability insurance, but it got to that point where I was missing opportunities because of it. So, I researched a bit... Read More
Paul McNeillyI’m just saying that is easy to get the vendors insurance with this company
Silvia DelgadoDefinitely a great asset to my business, I have never had a problem getting what I need from IC. Good communication skills, always get help from the agents, attenuative on... Read More
Robert AvilaYour site was extremely easy to use, I was able to get my event insured for what the event planners wanted. The price was so affordable. Even chatting... Read More
Rebecca RubyQuick easy sign-up convince is great
Vincent DavanzoGreat to work with. Always available for assistance.
Two Pour Girls BartendingBest customer service I have ever had in regards to insurance.
Edward FindleySuper easy and convenient. Just renewed, thanks.
Wendy BergGreat to work with. Always available for assistance.
Courtney AraneoThis is only the second year I have had this insurance. Haven't had to use it. But it's nice to know i have it. The price is great too
Vickie SundgrenCanopy insurance has been great for my business. Definitely a five star definitely recommend it..
Fernando FerreiraVery easy and straight forward experience! The agent and live chat were instrumental in acquiring my policy.
Jacob Smith JrRey was amazing. So easy! So fast!
Herman KochAlways treated well. They take care of my business insurance and I don’t have to worry about anything with insurance canopy in my corner. 10 year customer.
Mark PaquinExcellent rates and coverage! Did a lot of homework before going with Insurance Canopy, by far the best bang for the buck 🙂
Alana WyldShe is positive and friendly !
Alan DyninHad a great experience obtaining a policy quickly for a solo musical act. After a year, modified my policy to a fully staffed production easily using the chat feature of... Read More
Paul TolleI am a professional mobile DJ. I use Insurance Canopy for a policy to cover my equipment and liability. They are easy to do business and the website makes... Read More
Don KirbyBest price I have found! Excited to be a customer
Dustin PriceTLJ'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 gedeonSuper easy to use and great service; I had a little error from my part and needed to correct it customer service was super helpful they guided me through the... Read More
Ana ZavalaI needed some liability insurance for my business. The team at Insurance Canopy had great recommendations and the insurance was reasonable for the coverage. Web site and process... Read More
Susan TedescoWas waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad LaiblyGreat coverage, excellent price, terrific customer service. I checked out a lot of different carriers and they had the best reputation and coverage. Since most venues require insurance, it was... Read More
Steve BryantYou 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.
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All policies have conditions, limitations and exclusions, please read the policy for exact verbiage.
Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.
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