For most business operations and industries, workers comp is required by state law.

When workers comp is accepted, an employee gives up the right to sue your business for compensation.

If an employee experiences an injury or illness during the scope of their job, workers' comp benefits can assist with:

• Medical bills

• Missed income

• Costs for continued care

• Expenses related to funerals

Coverage generally applies regardless of who is at fault.

Premium is determined by two main factors.

• Class Code. Each code corresponds to a different line of work. A real estate agent will have a different code than an mechanic. The riskier the job, the higher the premium.

  A business can have multiple class codes. An admin assistant would most generally face less risks than a manual laborer working or the same company.

• Payroll. Each class code carrier a different rate. The payroll that falls under that rate gives you the premium amount

  If you pay your employees $100,000 per, and the associated class code is 1.5%,then your premium will be $1,500 + taxes and fee.

You will not be required to provide WC for subcontractors or independent contractors. But of course, it’s a good idea to make sure they are insured before working with them.

***Even though you are not required to insure contractors, if your relationship with him/her is reminiscent to that of an employer/ employee, it would be wise to provide them workers comp. They may expect you to cover injuries occurring in the workplace even though they are not officially employees.***