Workers’ compensation is a coverage that is designed to help protect both employers and employees. Employees benefit from receiving financial compensation for work-related injuries or illnesses, while employers can rest assured that they are protected from a lawsuit in the case that a worker is injured or falls ill due to work-related causes.

Most states require any business maintaining employees to carry workers’ compensation coverage. However, the cost of this coverage can vary.


What does workers’ compensation cover?

Workers’ compensation will provide employees who sustain work-related injuries or illnesses with payment for medical expenses, as well as any lost wages. It also provides benefits to dependents of employees who die as a result of an on-the-job accident.

An employee doesn’t have to be at the workplace to make a claim. They could be performing a job-related task off-site, such as running an errand, attending an event or making a delivery. As long as the injury or illness is tied to the job, workers’ compensation can cover it.

However, this coverage does not protect employees who are harmed due to their own wrongdoing, including intoxication on the job, injuries purposefully inflicted, or injuries incurred from an action that violated company policy. Workers’ compensation also does not cover emotional injury that is not related to a physical injury.


What affects your workers’ compensation costs?
  • Payroll: The more employees you hire and the more you spend on payroll, the higher your workers’ compensation premium will be.
  • Classification code: Your company’s classification code is determined by the type of work your employees do, which can affect the likelihood of claims and losses. Each classification code has an assigned rate that depends on the state you are operating in. If you have a large company with employees who perform varying tasks, you may have several classification codes.
  • Experience modification: Your premium can go up or down depending on the number of claims and losses you experience. If you have very few workers’ compensation claims, your premium may decrease, while a year of more losses than usual can result in an increased premium.


Your partner in protecting your company.

HUNT Insurance partners with Walsh Duffield to provide our customers with comprehensive commercial insurance solutions, including workers’ compensation. We will help you navigate how you can work to reduce your premiums and keep your employees safe and healthy on the job.