Workers’ Compensation 101 — What Employers Need to Know

Crosswinds Insurance
3 days ago
2 min read

If you have employees, you may be legally required to carry Workers’ Compensation Insurance. But even when it’s not required, it’s still one of the most important protections a business can have.

Here’s everything you need to know about Workers’ Comp — written in plain English.

What Is Workers’ Compensation Insurance?

Workers’ Comp protects your employees and your business if someone is injured or becomes ill due to their job.

A Workers’ Comp policy typically covers:

Medical expenses
Lost wages
Rehabilitation and therapy
Disability benefits
Death benefits
Employer legal protections

It ensures your employees receive support — and protects your business from costly lawsuits.

Why Workers’ Comp Matters

1. It’s Required by Law in Most Cases

Most states require Workers’ Comp if you have one or more employees. Not having it can lead to fines, legal trouble, and business shutdowns.

2. It Protects Your Team

From slip-and-fall accidents to repetitive strain injuries, Workers’ Comp ensures your employees get the medical care they need.

3. It Protects Your Business

Without Workers’ Comp, an injured employee can sue you directly. With it, their benefits are paid by the insurance company — and your business is shielded.

Common Workers’ Comp Claims

Some of the most common claims include:

Lifting injuries
Slips, trips, and falls
Cuts or fractures
Burns
Equipment-related injuries
Occupational illnesses (like chemical exposure)

These accidents can happen in any industry — construction, restaurants, retail, trucking, offices, and more.

Workers’ Comp Audits — What You Should Know

At the end of each policy term, most carriers perform an audit. They compare your estimated payroll to your actual payroll to calculate the correct premium.

This is why it’s important to: