Find the Right Workers' Compensation Insurance
As an agent, we can compare rates of well-known carriers and help you find the best workers’ compensation insurance coverage for your business — either through our top 100 insurance agency1 or our Professional Employer Organization (PEO).
Why Choose Paychex
Beyond being mandatory in most states, there are good reasons to carry workers’ compensation coverage.
- Non-covered injuries and a decline in employee productivity could affect your bottom line.
- More than 2.8 million workplace injuries and illnesses were reported by private industry employers and more than 2.2 million cases involved days away from work.2
- Workers’ compensation coverage could help protect your business from potential liability from employee injury and illness.
What Are the Workers' Compensation Mandates in Your State?
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Included in Our Workers' Compensation Coverage
Compare Coverage and Rates To Find the Right Policy
Licensed agents from Paychex Insurance Agency assess your needs, help you find the best coverage options, compare rates, and deliver a complete insurance plan at competitive pricing.
Easy and Transparent Billing Options
Have the premium calculated based on actual payroll each check date,3 or directly pay the workers’ comp carrier in a lump sum or installments. Either way, we’ll be there to service your policy and answer questions.
Monthly Reports Detailing Total Insurance Expenses
Easily accessible monthly and year-end reports demonstrate exactly where you stand with wages, payments, and deductions.
Pay As You Go and Help Improve Your Cash Flow
If you use Paychex payroll, we can calculate your workers’ compensation premiums based on actual wages, not estimates, which helps reduce the risk of unexpected payments and fees that could affect your cash flow.3
Access Your Certificate of Insurance (COI)
Prove your business has an active workers’ compensation, general liability, auto liability, and/or umbrella liability policy in place when needed. We can directly provide your COI in most circumstances.
Work With Top Workers’ Compensation Insurance Carriers
Our licensed agents can help you get workers’ compensation coverage from top-tier national and regional carriers.
Get Help Developing a World-Class Safety Program
Maintain a safe work environment with help from our off-site risk management team, including experienced underwriters, loss control specialists, and claims managers, who can:
- Direct or authorize initial medical treatment
- Educate injured workers
- Help ensure timely payment of lost wages
- Assist with the return to work
Putting Workers' Compensation Insurance on the Menu
“We had a different kind of workers' compensation program and I found out very early on that when you don't have an eye on it right throughout the year, it can add up. [Now], we know exactly what we're paying at the end of the year and it's honestly helped us so much for our budgeting.”
— Audrey and Jordan Zybala, Owners, Lago 210
Simplify Workers’ Comp and HR With One Solution
Bundle workers’ compensation coverage with employee benefits, payroll, and other HR services to help you:
- Attract and keep employees
- Reduce administrative costs
- Increase productivity and profitability
Technology and Service To Meet Your Needs
From insurance to payroll, HR, and benefits, we offer the support you need to save time, improve accuracy, and help protect your business and employees from costly claims and losses.
Business Owner’s Policy (BOP)
Save money with essential business protection.
Commercial Auto Insurance
Cover expenses due to a work vehicle accident.
Cyber Liability Insurance
Protect your information and business reputation.
Employment Practices Liability Insurance (EPLI)
Protect against employee claims of harassment, discrimination, and more.
General Liability Insurance
Manage risk and protect the assets of your business.
Commercial Property Insurance
Cover your buildings, inventory, and equipment against loss.
Payroll Services
Pay your employees easily and accurately, whether you do it yourself or work with one of our payroll specialists.
Manage Risk With More Confidence
Secure important protection for your business and employees with our workers’ compensation coverage.
Workers’ Compensation FAQ
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Why Do I Need Workers’ Compensation Insurance?
Why Do I Need Workers’ Compensation Insurance?
Most states require businesses with employees to carry workers’ compensation insurance to provide benefits to employees for work-related injuries or illnesses. Beyond offering employees health insurance, which doesn’t cover work-related injuries or illnesses, small, midsize, and large businesses need workers’ compensation to protect injured employees and cover these claims. It will also help protect your business from lawsuits and help keep your business compliant with state regulations.
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How Much Is Workers Compensation Insurance?
How Much Is Workers Compensation Insurance?
Workers’ compensation insurance cost varies based on the business size, location, industry, and specific claims history. Also, workers’ compensation rates and requirements vary from state to state. In general, for every $100,000 in payroll, the average workers’ compensation policy ranges from a few hundred to a few thousand dollars per year. Once you have a plan in place, you can incorporate Paychex Payroll with our Workers’ Compensation Payment Service. This can help reduce the chance of additional end-of-year payments by basing your premium calculations each check date on actual wages, not estimates.
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Does a Small, Midsize, or Large Business Need Workers’ Comp Insurance?
Does a Small, Midsize, or Large Business Need Workers’ Comp Insurance?
Most likely yes. In nearly every state, workers’ comp is required, even if a business has just one employee.
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How Much Is Small, Midsize, and Large Business Workers’ Comp Insurance?
How Much Is Small, Midsize, and Large Business Workers’ Comp Insurance?
The average cost of workers’ comp insurance coverage will vary based on your unique small, midsize, or large business, including how much you issue in payroll, where your business operates, your industry, and your claims history. For instance, small business workers’ comp insurance premiums may be lower if most employees work at a desk all day but may be higher if the small business is in the construction or landscaping industry.
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Who Pays for Workers Compensation Insurance?
Who Pays for Workers Compensation Insurance?
Workers’ compensation premiums are paid for by the employer. Premiums are calculated based on the state requirements where the employer does business, the amount of payroll, risk exposure, industry, and type of work — a classification code determined either by the National Council on Compensation Insurance (NCCI) or the state rating bureau for the business.
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What Are Workers’ Compensation Benefits?
What Are Workers’ Compensation Benefits?
Workers’ compensation benefits are employee compensation and/or benefits for medical care, wage replacement, rehabilitation, and other assistance as a direct result of injury or illness while on the job (see question below for specifics). Each state determines the amount and duration of worker compensation benefits and how they are administered.
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What Are the Four Types of Workers’ Compensation Programs?
What Are the Four Types of Workers’ Compensation Programs?
According to the U.S. Department of Labor, the four main types of workers’ compensation programs are:
- Wage replacement benefits: Also known as disability benefits, wage replacement covers a percentage of the employee’s wages if they are unable to return to work temporarily or permanently.
- Medical treatment: The costs for treatments related to the employee’s workplace injury or disability.
- Vocational rehabilitation: Assistance to help employees who have been injured or disabled to return to work, including training, career counseling, and assistance finding a new job.
- Other benefits: Includes death benefits paid to families if the employee dies from injury or illness.
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How Much Is Workers Compensation Insurance for Contractors?
How Much Is Workers Compensation Insurance for Contractors?
If you’re self-employed or a sole proprietor, check to see if your state requires you to carry workers’ compensation coverage. Insurance premiums will vary based on factors such as your location, payroll, claims history, and job classification.
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Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?
Which Types of Employees Are Generally Not Covered by Workers’ Compensation Programs?
States outline their own exclusions from workers’ compensation coverage, but generally independent contractors, freelancers, and volunteers aren’t automatically covered.
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Is It Illegal Not To Have Workers’ Comp Insurance?
Is It Illegal Not To Have Workers’ Comp Insurance?
Find out if your state requires you to carry insurance for workers’ compensation. If your small, midsize, or large business doesn’t have it but is required to, you could be subject to costly penalties, which vary from state to state, or even jail time. Beyond workers’ compensation laws, it’s still a good idea to secure a policy from a workers’ compensation insurance company to protect you, your business, and your employees.
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Does Workers’ Compensation Come out of Your Paycheck?
Does Workers’ Compensation Come out of Your Paycheck?
Workers’ compensation insurance premiums are paid by the employer in a lump sum or installments. In certain cases, businesses may base their premium payments on actual wages by pairing their policy with their payroll processing, so a specific amount is withdrawn from their payroll account each payday. Workers’ compensation insurance premiums are paid by the employer in a lump sum or installments. In certain cases, businesses may base their premium payments on actual wages by pairing their policy with their payroll processing, so a specific amount is withdrawn from their payroll account each payday.
