What is workers’ compensation insurance?
Workers' compensation insurance provides critical benefits to employees who suffer work-related injuries or illnesses. Employers are generally required by law to carry this insurance, and it typically operates under a no-fault system, meaning employees receive benefits regardless of who is at fault. Employees report incidents and file claims with the insurance provider, who determines the benefits. This insurance protects employers from lawsuits and ensures employees get timely support without legal hurdles.
How much does it cost?
The cost of a workers’ compensation policy depends on several factors, including your business location, the number of employees, and the level of risk your business faces. Find out how much your workers’ compensation insurance policy would cost by getting a free quote!
Why do I need it?
There are several reasons why businesses need to carry worker’s’ compensation insurance:
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Legal requirement: In most states, workers’ compensation insurance is legally mandated. Non-compliance can result in fines, penalties, or even the shutdown of one’s business.
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Financial protection: Workers’ compensation insurance covers medical expenses and lost wages of your employee injured on the job. This shields your business from unplanned out-of-pocket costs.
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Lawsuit prevention: Not only does workers’ compensation cover benefits such lost work time and provide payment for medical expenses, but it can also protect employers from lawsuits by employees who are injured on the job.
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Risk management: Business owners always need to make sure they’re ready for the unexpected and workers’ compensation insurance is a way to protect both employees and employers when an employee becomes injured or sick from a work-related incident.
What does workers’ compensation insurance cover?
Acuity provides the benefits required by law in each state. Generally, workers’ compensation insurance covers the following:
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Medical expenses: Covers medical treatment for work-related injuries, including ER visits, doctor appointments, prescriptions, surgeries, hospital stays, rehabilitation, and medical equipment.
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Wages from lost work time: Provides wage replacement benefits to help the injured employee during their recovery, with the amount paid based on state guidelines.
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Disability: Covers the four main types of workers’ compensation disability, including permanent total and permanent partial. Benefits and the definition of disability vary by state.
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Financial support for a deceased worker’s family: In the event of an employee death due to work-related causes, this benefit helps cover funeral expenses and provides financial support for the worker’s dependents.
What doesn't workers compensation protect against?
There are several situations where workers’ compensation insurance may not apply. Below are some examples:
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Outside of work: If an employee is injured or becomes ill outside of work, workers’ compensation insurance will not cover any medical expenses related to that injury or illness.
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Intentional injuries: Workers’ compensation typically won’t cover injuries that occur when an employee intentionally harms themselves or violates company policies.
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Intoxication or drug use: If an employee is injured while working under the influence of alcohol or illegal substances, workers’ compensation may not cover medical expenses related to the injury.
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Commuting: Injuries sustained during an employee’s commute to or from work are generally not covered by workers’ compensation insurance.
The Acuity Nurse Helpline and cost containment
The Acuity Nurse Helpline is a free, valuable service that simplifies access to nonemergency care for injured workers. We also provide a network of qualified doctors to treat your employees, with contracted rates averaging 35% below typical fees to help you save on medical treatment. Acuity automatically reviews each medical bill incurred by your employee to ensure the treatment aligns with the injury and charges are correctly billed.
Learn more about Acuity's nurses helpline here.
Acuity's Prescription Drug Partnership
Prescription drugs can be very expensive. To control these costs, Acuity has partnered with a pharmacy management company that assists in choosing a cost-effective drug that fits his or her needs. Utilize our prescription drug form to help your employees take advantage of this program.
Your Acuity policy also covers Employers' Liability
The second part of workers’ compensation insurance is employers' liability. This coverage protects the employer from liability arising from work-related injury or illness not covered by workers’ compensation coverage.
AcuitySmartPay
AcuitySmartPay offers a more flexible way to manage your workers’ compensation premiums, especially if your payroll fluctuates throughout the year. Premiums are calculated monthly based on the payroll you report each month. Your other lines of business written with Acuity can still follow a regular monthly billing, and all your premiums are combined on a single, convenient statement.
Acuity's Special Investigation Unit (SIU)
The SIU works with claims representatives to investigate claims when there are questions about the circumstances of the injury, the location of the incident, or when malingering is suspected. The SIU also helps determine if an injury was caused by a faulty product or due to another party's negligence.
Texas Health Care Network (HCN)
Acuity has partnered with CorVel to offer Texas employers a workers’ compensation health care network (HCN) option through the Texas CorCare® Network. This network has widespread coverage in nearly every Texas county and all major population areas.
Electronic Medical Billing
Acuity partners with CorVel to process medical bills electronically.
Who needs Workers’ Compensation Insurance?
Retail
Wholesalers and distributors
Services businesses
Restaurants
Auto repair shops
Landlord & rental properties
Commercial auto insurance
Does your business rely on vehicles to get work done? When an employee is involved in an auto accident our commercial auto insurance protects your business. Acuity would love to keep you working and on the road.
Excess Liability
An Acuity excess liability protects you with high limits of insurance and fits on top of the protection you have with your auto, liability, and employers’ liability coverage.
Acuity’s Businessowners Policy – Bis-Pak®
Bis-Pak® is the easiest way to insure smaller businesses. The broad coverage insures buildings, contents, and liability with business income included automatically—all in one simple policy.
Equipment Breakdown
Equipment breakdown coverage is no longer simply for your boiler and machinery. Learn about all of the things that Acuity's equipment breakdown can cover.
FAQs
Have questions? We have answers.
Is workers’ compensation insurance required by law?
Yes, in most states, workers’ compensation insurance is required for businesses with employees. The specific requirements vary by state, and our agents are knowledgeable about the laws in your area. Failure to comply with these requirements can lead to significant fines and, in some cases, business closure.
Are subcontractors covered by workers’ compensation insurance?
Whether subcontractors are covered by workers’ compensation depends on the state. Generally, workers’ compensation covers only employees, not subcontractors. However, in some states, subcontractors may be classified as employees if they do not have their own workers’ compensation insurance.
Does workers’ compensation insurance cover me if I’m the owner of the company?
In many states, if you’re self-employed or the sole employee of your business, you may not be required to carry workers’ compensation insurance. However, even if it’s not mandatory, you may want to have this coverage to ensure you're protected in case of a workplace injury, as your health insurance may not cover it. Be sure to check local laws and insurance policies to understand your coverage. For questions, feel free to reach out to our agents.
What benefits does workers’ compensation cover?
The benefits provided by workers’ compensation vary based on factors such as state regulations and the severity or permanence of the injury or illness.
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