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Workers’ Compensation Insurance for IT Professionals

Workers' Compensation Insurance for IT Professionals

Get a quote on Workers' Compensation insurance

The IT industry may not seem especially dangerous compared to other industries, but there is still a risk that your employees may be injured or fall ill on the job. In any industry, there’s always a possibility that employees will slip or fall and injure themselves, and repetitive strain injuries are common among employees of IT companies who often spend long hours at their computers. If your employees suffer injury or illness in the course of their work, Workers’ Compensation Insurance (commonly known as Workers’ Comp) will provide coverage for their medical expenses and lost wages.

What is Workers’ Compensation Insurance?

Workers’ Compensation Insurance is a type of liability insurance that provides financial benefits to your employees if they suffer a work-related injury or illness while working for your business. Most injuries that occur while an employee is working qualify for Workers’ Compensation coverage. The insurer will pay for medical expenses, rehabilitation, and a portion of lost wages for the injured person. If an employee dies from a work-related accident or injury, Workers’ Comp can pay for funeral costs and death benefits for the employee’s surviving family.

Example:

When employees accept Workers’ Comp benefits, they agree not to sue your company for the injury. In most states, employees cannot opt out of Workers’ Comp. Workers’ Compensation is a no-fault policy, which means that insurers will pay benefits regardless of who is at fault for the injury. Benefits would still be paid even in situations where the employer created an unsafe environment that caused an employee to be injured or where the employee acted unsafely.

Is Workers’ Compensation Insurance required for IT professionals?

Workers’ Compensation Insurance is regulated at the state level, and almost every state requires you to have it if your business has employees. In most cases, owners or partners in the business are not counted as employees. Most states require you to purchase Workers’ Comp coverage as soon as you hire your first employee, while others don’t require Workers’ Comp until you hire a certain number of employees, with coverage being required after you hire your third, fourth, or fifth employee. If you don’t carry this insurance when you are required to have it, you may be subject to fines and penalties, and even criminal charges in some states.

The only state where Workers’ Compensation Insurance is completely optional is Texas. However, businesses who aren’t required to have Workers’ Compensation Insurance may still choose to carry this coverage to protect their employees and themselves in the event of a work-related injury. Companies that don’t have Workers’ Compensation Insurance can be sued for the medical expenses and lost wages of injured employees.

What does Workers’ Compensation Insurance cover?

Workers’ Compensation Insurance covers any injury or illness that is related to work, including injuries that take place at your business location, at outside work sites, or while an employee travels for work. Injuries that occur while an employee is driving for work purposes (such as traveling from their office to a client’s office) are covered, even if the employee is using their personal car. However, injuries an employee suffers while commuting to and from work are not covered.

Example:

Most injuries that happen while working are covered, but each state has individual regulations and requirements for Workers’ Compensation Insurance. States regulate what specific types of illnesses and injuries are covered, what benefits are available for employees, and what tests or medical examinations are required to verify claims. Since coverage requirements vary by state, it’s important for companies with employees in multiple states to work with their insurers to make sure they have adequate coverage for all employees.

Example:

Who is covered by Workers’ Compensation Insurance?

Workers’ Compensation Insurance covers employees at your company who suffer a work-related illness or injury. An employee is defined as anyone who provides services at the direction of an employer. This coverage includes employees who are minors or non-U.S. citizens.

Certain types of workers may or may not be excluded from coverage, depending on state regulations. It’s important to check with your state laws to see what types of workers are covered under Workers’ Comp.

The following are some of the types of workers whose coverage varies by state:

What kind of claims does Workers’ Compensation Insurance pay for?

Injury and Illness

If an employee suffers a work-related injury or illness, Workers’ Comp will pay for:

Lost wages payments are typically a percentage of the worker’s wages before injury. Insurers usually pay about two-thirds of lost income, but the exact percentage depends on the state. The amount and length of coverage also depends on whether the employee’s disability is temporary or permanent and whether their impairment is partial or total.

Example:

Death

If an employee dies from a work-related incident, Workers’ Compensation Insurance will pay for:

Death benefits are calculated based on the worker’s wages at the time of death (usually benefits pay about two-thirds of the workers’ income, but it varies by state). For a surviving spouse, the benefit may be paid until his or her own death or remarriage, depending on the state. For children, the benefits may be paid until the children reach age 18.

What are the key exclusions to Workers’ Compensation Insurance?

Workers’ Comp covers most work-related injuries, but some situations are excluded. Situations Workers’ Comp would not cover include:

Example:

Workers’ Compensation Insurance vs. Employers Liability Insurance

In most states, employees cannot sue their employer for injuries that are covered by Workers’ Compensation Insurance. Each state defines what is covered under Workers’ Comp. For injuries that are not specified as covered under Workers’ Comp, employees may sue their employer for damages. Employers liability insurance, also known as “Part Two” or “Part B” of Workers’ Comp, covers these risks. It will defend any cases brought against your company for injuries not covered by Workers’ Comp, covering legal fees, court costs, and any settlements or judgments against your company. Workers’ Compensation policies usually include employers liability coverage, but in some cases you may need to buy it separately.

Pricing and Quotes

The premiums on Workers’ Compensation Insurance vary depending on a number of factors. Though most small businesses pay less than $1,000 annually for Workers’ Comp, much of the final pricing will depend on your company’s risk to insure.

Pricing for Workers’ Compensation Insurance is based on a number of factors, including:

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer Workers’ Compensation Insurance:

ProviderWorkers' CompensationGeneral LiabilityProfessional Liability
CoverageSmith✔️✔️✔️
CoverWallet✔️✔️✔️
Embroker✔️✔️✔️
Hiscox✔️✔️✔️

Final Word

Every company runs the risk that their employees may be injured on the job. While most IT companies may not have a high level of physical hazards compared to many other industries, trip and fall injuries and repetitive strain injuries are still common. Workers’ Compensation Insurance will cover medical expenses and lost wages for employees who are injured while working or have an illness related to their work. Workers’ Comp coverage is required by most states, and even where it is not required, IT companies should consider carrying this coverage to protect their employees who are injured in the course of their job duties.

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