Workers Compensation Insurance

Nearly every state requires most businesses to carry workers compensation insurance. The workers comp system is governed by state statute and rules around coverage for benefits, and penalties for not insuring your employees vary by state.

Workers comp helps cover medical expenses, lost wages and rehabilitation costs if an employee is injured or contracts a disease due to their job. Without it, businesses may have to pay all costs out-of-pocket and could face steep fines, legal liability or even criminal penalties. 

Even for employers in states or at businesses where coverage isn’t mandatory, having workers compensation insurance is strongly recommended because it protects businesses and employees. In monopolistic states, employers are required to purchase insurance from a state-run fund, or may have the option to self-insure and  contract with a third-party administrator (TPA) to handle their claims.

Learn more about state-specific workers compensation insurance requirements.

An employee should report the injury or illness to the employer as soon as possible and seek medical attention if needed. Employers should document details about what happened, when, where, and witnesses involved and, in some states, provide required forms to the employee. Employers should report the injury. Prompt reporting is essential to avoid penalties and provide timely benefits for injured employees.

Be sure to follow the state-specific procedures and deadlines for the business.

Learn what happens after filing a workers compensation claim.

A workers compensation settlement is a voluntary agreement between an injured employee and their employer (or the employer’s insurance carrier) to resolve part or all of a claim. Not every disputed claim results in a settlement, and some states limit what can be settled or require formal approval before a settlement is finalized.

Typically, settlements are considered once the employee reaches medical stability and the long-term impact of the injury can be reasonably assessed. Employers play a key role by reporting claims promptly, maintaining accurate records and staying engaged throughout the recovery process. A strong partnership with the insurance carrier can help identify return-to-work opportunities and support timely resolution.

For more information about how workers comp settlements work, what to expect and what to do if a claim is denied, visit our Workers Compensation Settlements page.

Workers compensation insurance helps cover medical expenses and lost wages when an employee is injured or contracts a disease due to their job. It may also include support for ongoing care, vocational training, and disability and death benefits. Coverage typically applies to full-time and part-time employees, though eligibility for business owners varies by state.

Employers liability coverage is included in workers compensation policies and helps protect employers against legal defense costs and settlements or judgments for damages that arise out of an employee’s workplace injury or disease and aren’t covered by workers compensation laws. Employers in monopolistic states may choose to purchase employers liability coverage, also known as stop-gap coverage.

Most states allow employers to self-insure for workers comp and purchase excess coverage that applies over a retained limit paid by the employer.

Learn in detail what workers compensation insurance covers – and what it doesn’t.

No, not all workers compensation insurance is the same. While coverage is governed by state law, the quality of service can vary significantly between insurance providers, especially when it comes to industry expertise, claims handling and service capabilities, risk management training and support.

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

The broad array of products and services available to our 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, we offer premium audit options as well as flexible billing services and installment plans. 

Learn more about Travelers workers comp.

To find the right workers compensation policy for your business, contact a local Travelers agent and get started today.