Workers’ Compensation Insurance

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What is workers’ compensation insurance?

Workers’ compensation insurance — also called “workers’ comp” insurance — is a type of business insurance that is designed to protect business owners in case an employee is injured or becomes ill on the job.. It can also cover you if you work solo. Think of workers’ compensation insurance as a band-aid that can help both the employer and employee cover the costs of:

  • Medical expenses
  • Death benefits
  • Lost wages
  • Permanent or temporary disability
  • Rehabilitation and retraining

Remember that general liability insurance and workers’ comp insurance cover different things. While general liability insurance covers bodily injury to a non-employee third party, workers’ comp insurance covers injury to your employees as a result of their work for you.

How does workers’ comp insurance work?

A handful of states (called “monopolistic states”) require employers to buy workers’ comp insurance from a state fund, but for the most part, small business owners can buy a policy from private insurers whose services are available to the public. They can buy workers’ comp either directly through the company or through an insurance agent or broker.

With Thimble, you can easily click “Get a Quote” on our site or on the app, answer a few basic questions about your business such as your ZIP code, industry, job type, payroll, and the number of employees at your company or on the job. You’ll get a workers’ compensation insurance quote in minutes. We want you to take employee safety as seriously as employee training and the quality of your work.

What does workers’ comp insurance cover?

Hopefully, a work-related injury or illness only causes a temporary setback, but as a business owner, you must prepare for every possibility. Workers’ compensation insurance (sometimes called “workers’ comp” or “workmans’ comp insurance”) could help cover expenses related to situations such as:

Employee accident or injury

Say that your employee slips and falls on the floor while cleaning your storefront. Workers’ comp can cover the cost of her medical expenses, as well as recoup lost wages while she recovers.

Employee illness

Your employee falls ill as a result of paint exposure in a poorly ventilated room; workers’ comp could cover the cost of his treatment and lost wages.

Employee disability

Imagine that your highly skilled employee has an accident while operating complex machinery at your workplace. If he’s unable to work because of his resulting injury, workers’ comp can cover his wages and even the cost of retraining for a new job.

Repetitive stress injury

You’re a self-employed photographer who develops a chronic wrist injury. If you have opted to purchase workers’ compensation insurance for yourself prior to getting hurt, the cost of your medical care could be covered.

Who needs workers’ comp insurance?

While some industries and employee types may be exempt from workers’ comp requirements, it’s a wise investment for pretty much anyone running a business, including:

  • Small business owners with full or part-time employees
  • Independent contractors
  • Sole proprietors

Why is workers’ comp insurance important?

Many states legally require businesses with employees to have workers’ comp insurance, so if you are uninsured and an employee sues you for their medical costs, you could be responsible for paying out-of-pocket for their medical costs. Data shows that in 2019, the average cost for a workers’ comp claim was $42,000.¹ And, depending on the state, you could face fines and other penalties. You’ve carefully recruited the top talent for your team; don’t let a workers’ comp claim take you out of business.

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Why choose Thimble for your workers’ comp insurance?

While a work-related injury or illness may be painful, getting coverage doesn’t have to be. Thimble cuts down the hassle of buying workers’ compensation insurance so that you and your employees can focus on the job at hand.

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What other types of business insurance do I need?

If you run a small business, general liability insurance and workers’ comp insurance are two of the most important policies for you to consider. Here is a menu of coverage that you should consider buying along with workers’ comp:

General Liability Insurance

General Liability Insurance

General liability insurance or “CGL” provides coverage against third-party claims for property damage, bodily injury, and personal and advertising injury. That means the everyday accidents that can happen on the job: slip and falls, flying tools, or spilling coffee on a customer’s laptop—you get the idea. CGL is one of the most basic types of insurance for small businesses.

Professional Liability Insurance illustration

Professional Liability Insurance

Professional liability insurance, also called errors & omissions (E&O) insurance, covers claims of financial loss as a result of providing—or failing to provide—professional services properly.

Commercial Property Insurance

Commercial Property Insurance

Commercial property insurance covers costs as a result of direct physical loss or damage to a building or its contents in situations like a fire or windstorm. Even your accounts receivable can be protected by commercial property coverage.

Business Owners’ Policy illustration

Business Owners Policy

A business owners policy or “BOP” is all the coverage most small businesses need in one easy package with two main areas: commercial property insurance and general liability insurance.

Business Equipment Protection

Business Equipment Protection

Business Equipment Protection is a type of first-party insurance that covers business equipment that you own, rent or borrow and is used in connection with your business. (Other insurance companies for small businesses call it inland marine insurance, but we like to keep things clear and simple.)

Workers’ Comp FAQs

Is workers’ compensation insurance required by law?

Usually. Workers’ comp is required in most states (except Texas) if you have at least one employee. It will kick in if an employee suffers a work-related injury or a work-related illness or disease. In fact, many states have made it illegal not to get workers’ comp coverage with your first hire. Find out your state’s insurance requirements and apply for a workers’ comp quote today.

Do independent contractors need to get workers’ comp?

Many states exempt independent contractors from workers’ comp requirements if they are self-employed and have no other employees. This means you’re on your own to pay for medical expenses if you get hurt or sick due to work. However, some clients may require contractors to buy workers’ comp insurance to limit their liability. Furthermore, if you hire employees or subcontractors, you may be required to purchase workers’ compensation insurance for them.

I’m self-employed; do I need workers’ comp?

Self-employed individuals are also sometimes exempt from workers’ comp coverage (laws vary by state). Consider buying a workers’ compensation insurance policy for yourself — even if you have health insurance — so you aren’t left footing the medical bill and missing out on wages if an accident occurs. It’s cheaper to get workers’ comp insurance than to face a pile of medical bills by yourself.

What does workers’ comp insurance not cover?

Workers’ compensation insurance does not cover injuries caused to non-employee third parties. Worker’s comp also won’t cover injuries that occur to you outside of work (such as during a commute), injuries caused by intoxication or other substance abuse, or during non-work-related activities during business hours, such as recreational events.

When do I need to buy additional employers’ liability coverage?

It depends on where you live. Workers’ comp usually includes employers’ liability, which provides a legal defense if your employee claims that your negligence caused their work-related injury or illness. However, if you buy workers’ comp from a monopolistic fund, you would purchase employers’ liability coverage separately.

How do you calculate workers’ comp insurance costs?

This gets complicated, but workers’ comp calculations usually take several factors into account. Your working compensation insurance rate depends on:

  • Class codes — How states classify the type of work
  • Rates for the class code — Determines your premium depending on the risk level of your job
  • Payroll — How much you pay each employee per year
  • Claims history modifier — How your state workers’ comp bureau compares your claims history to what’s expected from a business like yours.

You can get a workers’ comp insurance quote in a few quick minutes with Thimble. The peace of mind knowing your employees and your business are protected? Priceless.

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4.7/5 stars from 959 reviews

  • Fast & Easy

    This is fast and easy and works great for me! I am a one man freelance landscaper and this gives me the ability to purchase insurance directly from my phone anytime and anywhere I need it.

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  • So Easy!!! I LOVE IT

    It was so easy, quick, and simple. The PDF package I received contained everything I needed. This was the best experience I've ever had obtaining insurance...thank you!!!

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  • Great rate!

    I was very impressed with your monthly rate on general liability coverage! Much less than 1/12 of everyone else's annual rate.

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  • I love the convenience

    I love the convenience of this insurance app, its the best thing since sliced bread????????

    Michael M.

  • Fast & Easy

    This is fast and easy and works great for me! I am a one man freelance landscaper and this gives me the ability to purchase insurance directly from my phone anytime and anywhere I need it.

    Paul H.

  • Super easy to use! Thought of everything

    This app is beautiful and super easy to use! It's super easy to get insurance for the weddings I shoot where the venues require insurance. I can just buy it on the app with 3 clicks and I'm done.

    Lan Z.

  • Awesome Product

    I love this idea ????!! I needed to have proof of liability to present my proposal; got it on the spot. I didn't win the bid but I didn't get stuck with costly insurance, either!!

    Genna A.

  • So Easy!!! I LOVE IT

    It was so easy, quick, and simple. The PDF package I received contained everything I needed. This was the best experience I've ever had obtaining insurance...thank you!!!

    Alex R.

  • Great rate!

    I was very impressed with your monthly rate on general liability coverage! Much less than 1/12 of everyone else's annual rate.

    Thomas G.

  • I love the convenience

    I love the convenience of this insurance app, its the best thing since sliced bread????????

    Michael M.

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