Frequently asked questions about workers’ compensation insurance

Almost every state requires tech businesses to purchase this policy as soon as they hire their first employee. Check your state laws and requirements for details.

Even if workers’ comp isn’t required, the owner of a small tech company may decide to purchase this coverage to avoid potentially high medical bills from an employee work injury.

Sole proprietors and partners can purchase this coverage for themselves if they choose to, but it’s not required.

Workers’ compensation helps cover costs when an employee at your tech company suffers a work-related injury or illness. It can help pay for:

• Emergency medical bills
• Ongoing medical treatment, such as physical rehabilitation
• Part of the wages lost while the employee is recovering

Most workers’ comp policies include employer’s liability insurance, which can cover a tech business’s legal costs if the employee blames their injury or illness on the employer’s negligence.

Unlike most policies, there’s no limit to how much workers' comp will pay on a claim, unless it’s an employer’s liability claim.

Learn more about workers’ compensation insurance coverage.

The cost of your workers' comp policy is based on multiple factors about your small business. The average small tech company pays just $36 per month, or $436 per year, for workers’ comp.

The exact cost of your workers' compensation policy depends on:

• Your business type
• How many employees you have
• How much insurance coverage you need
• Where you do business
• Industry and risk factors
• Payroll
• Coverage limits
• Your claims history

While these factors will primarily dictate the cost of your policy, there are additional measures you can take to keep your workers’ compensation rates low, including filing accurate workers' comp classification codes, and putting safety regulations in place to manage workplace risks.

Learn more about workers’ compensation insurance costs.

There are two scenarios when an independent contractor would need workers’ compensation insurance:

• A client contract demands you carry it
• State laws require it

Find out more about workers’ compensation insurance for independent contractors.

Our online application for workers’ compensation insurance takes about 15 minutes to complete. It requires some basic information about your tech company, including its location, the number of employees, and your estimated annual payroll.

In most cases, we’ll deliver multiple quotes from carriers as soon as you finish the application. Look them over and pick the policy that works best for you.

A licensed TechInsurance agent is available to assist you throughout the process. Once you purchase a policy, you can access your account and obtain a certificate of insurance, which is a formal proof-of-insurance document.

We specialize in small business insurance for numerous technology professions. Our insurance specialists have helped more than 350,000 businesses.

When an employee is injured at work, your first responsibility is ensuring the safety of your workers. Your immediate response should be to assist the injured, get workers to a safe area, and contact emergency medical services if anything more than basic first-aid is needed. When the situation is under control, talk to witnesses and take notes to document what happened.

When you or one of your employees is injured, you must:

• Give the employee the appropriate paperwork and guidance
• File the claim with the insurer
• Comply with state law for reporting work injuries

To make a workers' compensation claim, the employee must report the injury within a certain time frame, which varies depending on your state. The employer should provide the employee with appropriate paperwork, including a claims form, and submit it to the insurance carrier.

In some states, incidents must be reported to the state workers’ comp board. The employee may also need to seek medical treatment from a doctor approved by the board. Your agent can guide you through the process and provide answers to any additional questions.

If the injured employee is not satisfied with the insurance company’s offer on a claim, the employee can pursue a settlement with the help of an attorney. The employee, the attorney, and the insurance company will negotiate to find an amount that satisfies all parties. The employer should stay involved and informed to reduce the chance of a lawsuit.

As your tech business grows, your workers’ compensation premium will change accordingly. It’s easy to add insurance at a later date. Your insurance agent can adjust the coverage amount on your policy, and provide assistance if you need to purchase additional policies.

If you cancel your policy early, you run the risk of paying more for coverage down the road. Insurance companies typically charge higher rates to tech businesses that start and stop coverage.

You also leave your business exposed to potential risk if you cancel your coverage. Because workers’ comp is often required by state law, you could face fines or even jail time depending on the laws in your state.