Required for employers in nearly every state

Workers' Compensation Insurance

Workers' Compensation provides medical benefits and wage replacement to employees injured on the job. In nearly every state it's required once you have employees, and going without can mean penalties, a stop-work order and personal liability for an injured employee's costs. Who has to carry it differs by state.

Get a quoteCall (623) 873-1234

At a glance

Workers' Comp

Reviewed by a
licensed agent
Legal Status
Required for employers in nearly every state
Non-Compliance Penalty
Set by each state: penalties, stop-work orders
Rate Basis
Per $100 of payroll by class code
Audit
Annual payroll audit at policy expiration

Watch for: Owners can often include or exclude themselves. Choose on purpose.

The policy

What it covers, and who it's for.

The short version. What a policy actually covers is in its forms and endorsements, and we read those with you before you buy.

What it covers05

  • Medical treatment for work-related injuries and illnesses
  • Temporary and permanent disability income benefits
  • Lost wage replacement (typically 2/3 of average weekly wage)
  • Death benefits for dependents of fatally injured workers
  • Employer's Liability — legal costs if an employee sues beyond the WC system

Who needs it05

  • Employers in nearly every state — in some, one part-time employee is enough to trigger the requirement
  • Contractors who hire subcontractors (you may be liable for uninsured subs)
  • Businesses with high-injury-risk operations (construction, restaurants, logistics)
  • Staffing agencies and businesses using temp workers
  • Note: Sole proprietors with no employees are exempt but can opt in voluntarily

By state

Workers' comp changes at the state line.

Arizona
Required for any employer with one or more employees (A.R.S. §23-902). An uninsured employer can be sued directly by an injured worker without the usual defenses, must repay any benefits the state’s Special Fund pays plus a penalty of 10% or $1,000, whichever is greater, and faces civil penalties of up to $1,000, rising to $5,000 and $10,000 for repeat failures within five years. The Industrial Commission can also ask a court to stop the business operating until it is covered.
California
Every employer with employees must carry it (Labor Code §3700). If the state finds you uninsured it issues a stop order, which bars using employee labor until you are covered, with a penalty of $1,500 per employee, and going without is a misdemeanor. Under AB 5 (Labor Code §2775) a worker is presumed to be an employee unless the business meets all three parts of the ABC test.
Elsewhere
Who has to carry it, who counts as an employee and the penalties for going without all differ by state. The 17 states we're licensed in.

Questions

About workers' comp, answered plainly.

Don't see yours? Call (623) 873-1234 or write to service@commercialy.com.

Often paired with

What usually goes alongside it.

  1. 01

    General Liability

    Core protection every business needs
  2. 02

    Commercial Auto

    Coverage for vehicles used in your business
  3. 03

    Contractors

    Comprehensive coverage for construction and trade contractors

Talk to a licensed agent, not a phone tree.

Tell us what you're insuring and we'll come back with workers' comp options from more than one carrier, explained in plain English.

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(623) 873-1234
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