Workman's Compensation Insurance
Affordable Workman’s Compensation insurance for your business
Successfully insuring businesses Since 1971
Why Amrisk?
AmRisk underwriters will find the right company and customize Workman’s Compensation Insurance to meet the specific needs of our customers both large and small. Backed by over forty years’ experience as a leading workman’s compensation specialist. Our team of workman’s compensation underwriting, risk management and claims specialists know the business from the ground up and will respond with tailored solutions for almost any customer need.
Coverage Solutions
Tailored Insurance
We spend one-third our lives working so it’s understandable that job-site injuries are common. AmRisk’s workers compensation policies offers insurance coverage for expenses resulting from on-the-job injuries and a vast array of safety resources to help reduce the likelihood of accidents from occurring.
Why is workers compensation insurance important?
In almost every state, there are laws requiring certain types of businesses to carry workers compensation insurance. Since it can be expensive and time-consuming to determine whether an injured employee or the employer is “at fault” in a workplace accident, workers compensation laws provide a consistent and fair way to handle the costs and compensation of work-place injuries and occupational diseases.
No matter how many safety precautions are followed in the workplace, unexpected accidents happen and employees can become ill due to workplace conditions
What Do We Offer & What Is The Cost?
Get the protection you deserve.
Workman’s Compensation Insurance Quick Facts
Your Workman’s Compensation policy will pay for employees’ work-related injury or illness expenses, including…
- Medical bills.
- Ongoing care (including medication and rehabilitation).
- Missed wages (often partial) during recovery.
- Funeral expenses for fatal incidents.
- Death benefits to support the deceased’s family.
But it won’t pay for :
- Injuries caused by intoxication or drugs.
- Self-inflicted injuries.
- Injuries from a fight the employee starts.
- Injuries caused by horseplay or company policy violations.
- Off-the-job injuries.
- Injuries claimed after an employee is fired or laid off.
- Independent contractor injuries.
- Wages for a replacement worker.
- OSHA fines.
How Much Does Workers’ Compensation Insurance Cost?
Workers’ Compensation Insurance rates vary from state to state. For example, per $100 in employee wages, rates range from $0.75 in Texas to $2.74 in Alaska. Behind those rates are a lot of variables. The cost of Workers’ Compensation depends on:
- Your state.
- Your industry.
- How many employees you have.
- The type of work your employees do.
- Your payroll.
- Your claims history.
The National Safety Council notes that the cost average cost for workman’s compensation claims in 2020 through 2021 was $41,757. According to NCCI data, the most costly lost-time workers’ compensation claims by cause of injury result from motor-vehicle crashes, averaging $89,152 per workers’ compensation claim that occurred in 2020 and 2021. The only other causes with above-average costs were burns ($52,161) and falls or slips ($49,971).
Understanding Your Workers Compensation Policy
Usually a workers comp policy has two parts: “Part One, Workers Compensation” and “Part Two, Employers’ Liability.”
Under “Part One”, the insurer contracts to pay whatever the state-required amounts of compensation may be. Unlike other types of insurance, workers comp coverage has no ceiling or limit on the policy amount. The insurance company accepts a transfer of the employer’s entire statutory obligation—whatever the employer is legally obligated to pay as a result of the injury.
“Part Two” of the policy provides coverage for an employer who is sued by an employee for work-related bodily injury or illness that isn’t subject to state statutory benefits. It has a monetary limit.
Employers’ liability also insures an employer in some other situations. One is so-called “third-party over suits,” where an injured worker files suit against someone other than the employer (a third party) and that third party then seeks to hold the employer responsible. For example, an employee injured while working with a machine might file suit against the manufacturer of the machine. The manufacturer might then sue the employer claiming that the cause of the injury was modifications the employer made to the machine or improper use. Another situation where this liability coverage applies is when the spouse of an injured worker sues the employer for loss of consortium.
What is not covered by workers comp insurance?
To receive workers compensation benefits, the injury or illness must have occurred due to a work-related event. If an employee is injured outside of their normal work duties, such as during their commute to work, these injuries would not be covered by the workers comp policy.
Other common exclusions include intentional injuries, injuries due to intoxication or substance abuse, or voluntary recreational activities at work. Be sure to read the entire policy and talk to an insurance agent to understand what is covered.
Do sole proprietors need workers compensation insurance?
Sole proprietors may not need to carry workers compensation insurance if they have no employees, depending on the state they are doing business in. But if a sole proprietor has people that do work for them, even if they don’t pay them with a W-2 form, they may be considered an employee according to the law. Be sure to check the state regulations specifically for sole proprietors, because laws can vary by state.
What are the workers comp laws in my state?
State laws define which types of workers are covered by a workers compensation policy. Certain types of employees such as seasonal workers, contractors, and volunteers may not be covered in some states. Be sure to read the policy documents and talk a local insurance agent to understand the limitations of any policy.
How is workers compensation insurance different than liability insurance?
While workers compensation protects a business if they are liable for an injury or illness that an employee is faced with, other types of liability insurance protect the business if they are sued by other people – such as a client, a neighboring business, or a visitor to the workplace. Learn more about commercial general liability insurance and professional liability insurance to understand what coverages are available to small businesses.
What can I do to reduce my premiums?
- Manage Your Risks
- Take Advantage of Saving Opportunities
- Be Sure Your Premium is Correctly Figured
- Raise Your Deductibles
- Try to Avoid Assigned Risk
- Coordinate Disability Programs
Manage Your Risks – Most small companies do not believe they can afford to hire a risk manager. Nevertheless, someone in the company should have a continuing responsibility for loss control and the management of workers comp claims. This involves a variety of programs to keep workers safe, the medical management of claims and early return to work for any injured workers.
In some states insurers must provide accident prevention services to employers. Even if not required to do so by law, the majority of workers comp insurers can help you improve safety. In some states, employers are required by law to set up safety committees and other programs to deal with unsafe conditions in the workplace. Even when not required by law, safety committees can be very effective at reducing accidents. For example, after UPS set up worker safety committees at each of its locations to identify the most frequent workplace accidents and took measures to reduce them, injuries that caused workers to take time off from work decreased by 59 percent.
Take Advantage of Savings Available in Your State – Several states allow merit rating credits. Smaller businesses that typically pay $5,000 in premiums or less may be entitled to a credit of 5 to 15 percent if they have not had any lost-work-time claims during a designated period. In some states there are premium credits for drug- and alcohol-free workplace programs and safety programs. Some insurers may give you a discount if you hire a professional risk management firm to help you with your safety program.
Be Sure Your Premium Is Figured Correctly – Make sure you have been placed in the right industry category. Check that the insurer’s payroll computation adjusts for overtime pay and allocates the payroll of different employees correctly.
Raise Your Deductibles – A majority of states provide for optional medical deductibles in workers comp insurance policies as a cost saving measure. Deductibles tend to encourage greater safety consciousness on the part of the employer who must pay the deductible amount.
Try to Avoid Assigned Risk – Cutting down on your claims is the best way to stay out of the state’s assigned risk plan, or insurer of last resort, which usually costs more. You may have been put into assigned risk without knowing it. Ask your agent to check on your status.
A Leader In The Workmans Compensation Insurance Industry
AmRisk has developed a reputation for creating innovative and cost effective risk management programs for specific business niches such as entertainment, recreation, equestrian and agribusiness. We deliver value by working in partnership with clients, companies and producer associates. This team approach reinforces our commitment to focus on quality, innovation and profitability.
Contact Us
Contact us today for a no obligation insurance review and quotation.
PO Box 6230
Scottsdale, AZ 85261
602.702.7600
