What is Workers Compensation Insurance?

In most states, employers are required to carry workers compensation insurance – even for temporary or seasonal workers. For more information visit our State-specific workers compensation information resource.

Workers compensation insurance rates may vary based on factors such as a company's state, payroll and claim history. Travelers has a broad risk appetite, can customize insurance programs and offers competitive pricing.

A workers compensation insurance quote is calculated by evaluating many factors including your location, the size of your payroll and your claim history. Exact costs will vary based on each insurance company, but there is some consistency in how they work together to generate a price for your business. Having workers compensation insurance with the same insurance company as other coverages can help reduce coverage gaps and protect your business.

Workers compensation policy quotes are predominately based on a rate charged per $100 of payroll. These rates can vary depending on your state, the type of work your employees perform, and your business's claims history. The type of work employees perform determines the Workers Compensation Classification Code rate. Different types of work are charged different rates. States provide the basis for rates by classification code.

Your business' insurance claims history helps determine your Experience Modification. The rating bureaus calculate the Experience Modification for eligible businesses, the use of which is mandatory on workers compensation policies. Better than average claims history may generate a modification factor below 1.00, and worse than average claims history may generate a modification factor greater than 1.00.

Because coverage is statutory, many may think that all workers compensation coverage is the same. Coverage can be similar state to state however, there can be vast differences between insurance carriers especially when it comes to industry expertise, claims handling and service capabilities and the level of risk management training and support they provide customers.

For example, Travelers offers a wide variety of products designed to enable customers to tailor insurance solutions to address the unique needs of their business. The quality of Risk Control and Claim services experience provided to customers by Travelers is unique and at a service level unmatched in the insurance industry.

The broad array of products and services available to Travelers customers include dividend plans, captive programs, managed care plans, bundled and unbundled loss sensitive programs, drug-free safety credits and more. In addition to our loss prevention and claim services, Travelers offers premium audit options and flexible billing services and installment plans.