Summit Insurance Advisors

Jump to navigation

A Guide to Worker’s Comp Insurance

Summit Insurance Advisors


by Michael Harbron on Jul 16, 2018

What Small Business Owners Need to Understand About Worker’s Comp

When you own a place of business, whether it’s a store or an office you set up in your garage, you need to protect yourself and your employees from accident and injury. After all, you’ve brought these people together, and if something happens to them when they’re at work under your supervision, you could be held liable for the consequences. That’s why every company with employees needs worker’s comp insurance. Let’s dive into the basics of worker’s comp and what it means for your business.

What Does Worker’s Comp Insurance Cover?

Worker’s compensation insurance covers job-related accidents, injuries and illnesses. As a business owner, it’s your job to provide a safe and welcoming work environment for your employees, but there’s always a chance that someone could get hurt. When you or one of your employees gets injured or becomes ill because of something that happened on the job, worker’s comp may pay for the person’s medical bills, physical therapy, and may even reimburse the employe for their time away from work, so they can still pay their bills.

Why You Need Worker’s Comp Insurance

Worker’s comp insurance not only protects your employees, it also protects you, the business owner. Having a robust worker’s comp policy in place gives you peace of mind that you won’t be held legally or financially responsible if something happens to one of your employees when they’re on the job. Of course, you still need to do your best to provide your employees with a safe working environment and you may still be held liable if you willingly put your employees’ lives in danger, but worker’s comp removes the threat of liability in most situations.

Not to mention, worker’s comp may be required by law in your state. You may face steep penalties and fines for not providing your employees with worker’s comp insurance, depending on the size and structure of your business.

Who Needs Worker’s Comp Insurance?

Every employee will need worker’s comp insurance with some exceptions. Depending on which state you live in, you may not have to provide insurance for casual or seasonal workers, immediate family members that may work at the business, and your business partners or employees that are also owners.

For more information on who needs to be covered by worker’s comp insurance, reach out to your state worker’s comp official and learn about the laws in your state.

What Can I Expect to Pay in Premiums?

Premiums for worker’s comp insurance depend on a variety of factors, including the size and nature of your business, where your business is located and how much you pay your employees. If your business is located in a notoriously dangerous neighborhood or you ask your employees to engage in potentially dangerous activities, you can expect to pay a higher rate. If you’re looking to obtain a quality worker’s comp insurance policy for your business, visit us at to learn more.


866-711-5973 (fax)

Our location:

Scottsdale office

5425 E Bell Road Suite 103
Scottsdale, Arizona 85254

Additional navigation:

Home | About | Contact | Service | Privacy | Companies | Search | Disclaimer

© 2022 Summit Insurance Advisors