Workers’ Compensation Insurance

Workers’ compensation insurance is a policy that provides medical and wage benefits to employees who are injured or become ill due to work-related activities. It protects both the employee and the employer by covering required benefits while limiting employer liability. L Squared Insurance helps businesses design workers’ compensation coverage that aligns with their workforce, operations, and regulatory requirements.

What Does Workers’ Compensation Insurance Cover?

Workers’ compensation insurance responds to several types of work-related incidents and provides defined benefits under state regulations. Coverage typically includes the following:

• Medical expenses: This coverage may help pay for medical costs related to treating the injury or illness
• Rehabilitation: Workers’ compensation coverage may help cover the cost of physical therapy or other forms – of rehabilitation
• Disability: This coverage may help provide compensation for employees unable to return to work temporarily or permanently
• Death benefits: If an employee dies due to work-related causes, death benefits may be provided to the surviving family.

Is Workers’ Compensation Insurance Obligatory?

Across the United States, workers’ compensation requirements vary by state. Most states require employers to carry coverage once they hire employees, but the rules vary in terms of minimum employee thresholds, exemptions, and industry classifications. For example, Texas generally does not require private employers to carry workers’ compensation insurance, whereas most other states do.

In Michigan, workers’ compensation insurance is mandatory for most employers once they meet specific employee criteria. Requirements typically apply to full-time and part-time employees, and in some cases, certain contract workers. Failing to maintain required coverage in Michigan can result in penalties, legal liability, and direct responsibility for medical and wage costs.

L Squared Insurance helps businesses understand multi-state obligations and structure policies that comply with Michigan regulations.

What Is the Best Workers’ Compensation Insurance?

There is no single “best” workers’ compensation insurance policy. The right coverage depends on your industry, claims history, payroll size, employee classifications, and overall risk profile. Premiums and underwriting guidelines vary between carriers, and proper classification plays a significant role in how your policy is structured and priced.

L Squared Insurance works with multiple carriers to compare options, explain differences in coverage terms, and help you select the policy that aligns with your business operations and budget.

Complete a quote request, and we will prepare the best solutions based on your business structure and available carrier options.