Workers’ Compensation Insurance provides coverage for bodily injury and occupational diseases occurring at your company. Workers’ compensation is a no-fault policy, employers are liable whether or not the employee contributed to the illness or injury. Specifics of the insurance coverage vary from state to state, but all companies with more than five employees are required to provide Workers’ Compensation.
The cost for Workers’ Compensation insurance depends on the type of business you're in and the risk required of your personnel to perform their duties. Over 700 occupational codes are in place to help qualify the risk that each employee faces. As a result, your company is insured with a “rate per $100” based on the overall risk of the company.
After three years, an “experience modification factor” is calculated. This calculation compares the number of claims your company made to the claims made by other similar businesses in your state.