Workers Compensation
Phoenix

What is Workers Compensation Insurance? 

Workers compensation insurance provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work. This coverage is required by most states and can be the most expensive line of insurance for most employers. 

Who Needs Workers Compensation Insurance? 

Trick question – every business does. Many business owners feel that if their employees are independent contractors because they get 1099’s instead of W-2’s. This does NOT matter. What matters is whether they do this type of work for anyone else (like a contractor who has their own insurance, vehicle, and tools), and the issue of “control” where the employer tells them how and when to do their job. 

Workers Comp Insurance Requirements 

Some states require workers compensation insurance if you have a minimum of three to five employees, while other states, such as California, require workers compensation even if you have only one employee. All states agree that even if you aren’t required to carry workers compensation insurance, you are required to pay for medical and disability expenses incurred by any “employees” who are injured while working for you. If there is disagreement on the issue, a determination is made by the Department of Labor in your state after the injury has occurred. 

What is an e-Mod factor? 

An e-Mod factor is a rating number that is calculated based upon your workers compensation premiums and workers compensation claims payments and is designed to show what risk level your company is based on similar companies in your industry and location. There are many factors that are gathered and used in the calculation of this factor, but the two specific factors that a business owner or executive can manage and affect are the workers compensation premium and the workers compensation claims payments. 

Frequently Asked Questions

• Who Needs Workers Compensation Insurance? 

  Every business does. Many business owners feel that if their employees are independent contractors because they get 1099's instead of W-2's. This does NOT matter.

  What matters is whether they do this type of work for anyone else (like a contractor who has their own insurance, vehicle, and tools), and the issue of control where the employer tells them how and when to do their job. 

• What is Workers Compensation Insurance? 
  Workers compensation insurance provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work. This coverage is required by most states and can be the most expensive line of insurance for most employers. 
• What is an e-Mod factor? 
  An e-Mod factor is a rating number that is calculated based upon your workers compensation premiums and workers compensation claims payments and is designed to show what risk level your company is based on similar companies in your industry and location. There are many factors that are gathered and used in the calculation of this factor, but the two specific factors that a business owner or executive can manage and affect are the workers compensation premium and the workers compensation claims payments.  Costs of Workers Comp Claims  An effective risk management program goes beyond simply purchasing an insurance policy and paying an annual premium. No matter the size of your organization, there are steps you can take to improve the safety of your employees and take control of costs.  According to the National Safety Council, the average cost of workers compensation claims is $40,051. In addition to the medical costs, wage replacement, and indirect costs associated with a claim, there is also the negative impact that a claim can have on a company's experience modification (or e-mod) which can significantly increase workers compensation insurance rates for the next three years. 
• Do you think you might need Workers' Compensation Insurance?
  Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Workers' comp insurance is required by law in almost every state. Workers' comp laws are designed to ensure payment by employers for some part of the cost of injuries, or in some cases, of occupational diseases, received by employees in the course of their work.