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Workers' Compensation Insurance

Workers Comp for Retail and Service

What is Workers' Compensation Insurance?

Workers' compensation (a.k.a. workers' comp, work comp, workmen's compensation) insurance is a crucial component of the modern workplace, designed to provide financial protection for employees and employers in the event of work-related injuries or illnesses.


This insurance covers medical expenses, rehabilitation costs, and a portion of lost wages for employees who suffer injuries or illnesses while performing their job duties. It also serves as a liability shield for employers, preventing employees from suing them for workplace injuries.


Workers' compensation ensures that employees receive necessary medical care and financial support, promoting a safer work environment and offering a structured system for addressing occupational health issues. Employers typically purchase workers' compensation insurance to comply with legal requirements and create a safety net for both their workforce and the business itself.

Who Needs Workers' Comp Insurance?

Workers' compensation insurance is typically required in most states for businesses that employ any workers. The specific regulations vary by jurisdiction, but in many places, any business with employees must carry workers' compensation insurance. This includes small businesses, large corporations, and even nonprofit organizations.

The requirement ensures that employees have access to necessary support and benefits in the event of workplace injuries, and it also helps protect employers from potential lawsuits related to workplace accidents. It's essential for businesses to check and comply with the workers' compensation insurance regulations in their specific location.

Workers Comp for Hospitality and Industry
Workers Comp for Construction and Contractors

How Much Does Worker's Comp Cost?

Every state has its specific classification codes, based on the nature of the work conducted by your employees. Your state may also calculate your business's experience modification factor by assessing its performance relative to others in the same industry. The rate corresponding to the class code is then applied to your business's payroll, with each class code having a specific rate per $100.


The following are common factors considered in the final calculation:

  1. Industry Classification: Different industries have varying levels of risk for workplace injuries. Insurance providers use industry classifications to assess the overall risk associated with a particular business.

  2. Payroll: The size of a company's payroll is a key factor. Premiums are often calculated as a rate per $100 of payroll. The higher the payroll, the higher the premium.

  3. Experience Modification Factor: This factor reflects a company's historical claims and safety record. A business with a lower incidence of workplace injuries may receive a lower experience modification factor, resulting in lower premiums.

  4. Job Classifications: Specific job classifications within a business may have different risk levels. Employees engaged in more hazardous activities may result in higher premiums.

  5. Location: Workers' compensation rates can vary based on the location of the business. Different states may have different regulations and rates.

  6. Claims History: A company's claims history, including the frequency and severity of past claims, can impact premiums. A history of frequent or costly claims may lead to higher premiums.

  7. Coverage Limits: The amount of coverage selected by the business, including the maximum benefit per claim, can influence premiums.

Workers' comp insurance premiums are relatively easy to estimate, as it is a very straightforward set of calculations. Rest assured, you will not have to do any of them, though. Your agent at Maxam Assurance will work with underwriters across numerous carriers to run those numbers for you and deliver the coverage that best fits your business and job classifications.

Book a Free Workers' Comp Consultation Call

We offer a complimentary consultation call. This quick yet valuable session is designed to provide you with personalized insurance insights and guidance. During this brief chat, we'll discuss your insurance needs, address any questions or concerns you may have, and explore potential coverage options tailored to your unique circumstances.

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