Key facts about workers' compensation

Why you need workers’ compensation insurance

The answer is simple:

• It's the law: Nearly all states require workers' compensation insurance, depending on the size of your business.
• There are strict consequences: Non-compliant companies face hefty penalties and stop-work orders.
• No-fault protection: Most employees are eligible for workers' compensation, even if their injuries resulted from their own negligence.
• On-the-job coverage: Workers' compensation is unique and essential – health insurance generally won't cover job-related injuries or illnesses.

Who needs workers’ compensation insurance

Most states, with a few exceptions, require businesses to carry workers’ compensation coverage for their employees – even if you’re a small business. Workers’ compensation is especially important in the following industries:

• Healthcare
• Manufacturing
• Restaurants
• Retailers
• Contractors

How workers’ compensation insurance works

Workers' compensation insurance provides essential support for employees facing job-related injuries or illnesses, ensuring a smoother recovery and return to work. It generally covers:

• Medical treatment and care
• A substantial part of lost wages during recovery
• Disability benefits
• Funeral expenses in case of a work-related death
• Legal costs from work-related injury or illness lawsuits This insurance doesn't cover incidents outside work, intentional injuries, or those due to substance abuse or intoxication outside work hours. It’s a safety net for your employees and a financial shield for your business.

How workers’ compensation claims work

To ensure swift access to care and sufficient documentation for a claim, employees must immediately seek medical attention after a job-related injury. Once the appropriate paperwork is completed, employers must submit the claim, including supporting documents. After the claim is filed and approved, compensation is promptly paid to employees, allowing them to focus on recovery. They can return to work at their own pace, ensuring a smooth transition back into their roles with minimal disruption. If you have workers’ compensation through ADPIA, our licensed agents can work together with you to help you submit your claim to your carrier.

Guidance from seasoned insurance professionals

Working with ADPIA’s licensed agents, you'll receive knowledgeable and supportive guidance — from getting you coverage and price options to alerting you to requirements and regulatory changes. With more than 200,000 businesses trusting us with their insurance needs, you can make smart choices with confidence, knowing we have the knowledge, tools and resources to help meet your unique needs.

Improve cash flow and streamline payments with Pay-by-Pay®

What would you do if you had better cash flow to invest in your business? With ADPIA as your workers’ compensation agent and ADP’s payroll and Pay-by-Pay Premium Payment Program2, you get a simple, efficient way to pay your premium.

• No upfront premium deposit is required3, freeing up funds that you can invest in your business
• Premium payments are based on actual, not estimated, payroll data and carrier rates to minimize over or underpayments at your year-end audit4
• Payments are spread over your company's payroll cycle, so you know what to expect and when