COMMERCIAL INSURANCE
Workers Compensation Insurance
Required in nearly every state the moment you hire your first employee. Workers comp covers medical bills and lost wages when an employee is hurt on the job, and it shields your business from the lawsuit that would otherwise follow. We shop the market to get your industry the right rate.
Get My Quote Call 833-776-4671- Business Insurance
- Workers Compensation Insurance
Quick Answer: Workers compensation insurance pays an employee's medical bills, a portion of lost wages, and rehabilitation costs after a work-related injury or illness, and it protects your business from the resulting liability. Almost every state requires it once you have employees. Premiums are based on your industry class code, your total payroll, and your claims history, so two businesses of the same size can pay very different rates.
Workers compensation is the one commercial policy most employers are legally required to carry, and the one with the steepest penalties for going without. The moment you hire an employee, a single workplace injury can become a medical claim, a wage-replacement obligation, and a lawsuit all at once. Workers comp absorbs that exposure so a hurt employee is cared for and your business assets stay protected. As an independent brokerage, Pro Insurance Group compares carriers across the workers comp market, including specialty markets for businesses with prior claims, to match your industry, payroll, and risk profile with the right coverage at the right price, in Illinois and across 40-plus states.
What Workers Compensation Covers
Medical Expenses
Pays for treatment of a work-related injury or illness, from the emergency room visit to follow-up care and surgery.
Lost Wages
Replaces a portion of an injured employee's income while they recover and cannot work, easing the burden on both sides.
Rehabilitation
Covers physical and vocational rehabilitation costs that help an employee recover and return to work safely.
Death Benefits
Provides benefits to an employee's dependents in the event of a fatal workplace accident.
Employers Liability
Protects your business if an injured employee sues over the injury, covering legal defense and damages.
Occupational Illness
Responds to conditions that develop over time on the job, such as repetitive stress injuries, hearing loss, and exposure-related illness.
Workers comp does not cover injuries that happen off the clock or during an ordinary commute, injuries from intoxication or intentional self-harm, or independent contractors. That last point is a common trap: misclassifying an employee as a contractor to avoid coverage carries serious legal and financial consequences, and you may still be liable if an uninsured subcontractor is hurt on your job. Always verify a subcontractor's certificate of insurance before work begins.
Which Businesses Need Workers Comp
Any business with employees, but rates and risk vary widely by industry. See coverage built for your type of business:
How Workers Comp Rates Are Calculated
Workers comp pricing comes down to three factors, and understanding them is how you control what you pay. First, your industry class code, assigned by the National Council on Compensation Insurance, reflects the physical risk of your work. A clerical office, a landscaping crew, and a manufacturing plant each carry very different base rates. Second, your total payroll is the base the premium is calculated on, which is why accurate payroll reporting and correct employee classification matter so much. Third, your experience modification rate, or ex-mod, is a multiplier based on your claims history versus similar businesses. A clean history pulls your ex-mod below 1.0 and lowers your premium, while frequent claims push it above 1.0 and raise it. Workplace safety is not just risk management, it directly lowers what you pay every year. We review your classifications and ex-mod for errors that may be quietly inflating your premium.
What Workers Comp Costs by Class
| Business Type | Risk Level | Typical Rate (per $100 payroll) |
|---|---|---|
| Clerical / office | Low | $0.15 to $0.40 |
| Retail / hospitality | Moderate | $0.50 to $1.50 |
| Contractors / trades | Elevated | $2 to $8 |
| Roofing / high-hazard | High | $8 to $20+ |
Rates are illustrative and vary by state, carrier, and your experience modification rate. Workers comp is priced per $100 of payroll by class code, then adjusted for your claims history. Request a quote for a firm number based on your actual payroll and classifications.
Requirements Vary by State
Workers comp is regulated at the state level, so the rules on who must be covered, which owners can opt out, and the penalties for going without all change depending on where your employees work. Most states require coverage from the first employee, and penalties for non-compliance can be severe.
We are headquartered in Illinois and write workers comp in most states nationwide. For a full breakdown of one state's rules, including the first-employee requirement, owner exemptions, and the daily penalty for going uninsured, see our Illinois workers compensation insurance guide. Operating elsewhere? Request a quote and we will confirm your state's requirements.
What Our Clients Say
Why Employers Choose Pro Insurance Group
We Shop the Market
Independent means we compare carriers across the workers comp market, not one captive rate.
Classification Audits
We review your class codes and ex-mod for errors and audit discrepancies that may be costing you money.
Hard-to-Place Risks
Prior claims? We access specialty markets that standard carriers will not write, so you still have options.
Fast Binding
In most cases we can bind coverage within 24 to 48 hours of receiving your business information.
Workers Compensation Insurance FAQ
Is workers compensation insurance required?
In almost every state, yes, once you have employees. Workers comp is mandated at the state level and most states require coverage from your first hire, including full-time, part-time, and seasonal workers. Penalties for going without are steep and can include daily fines, stop-work orders, and personal liability for an injured worker's costs. See our Illinois guide for one state's specific rules.
What does workers comp cover?
It covers medical expenses, a portion of lost wages, and rehabilitation costs for an employee injured or made ill by their work, plus death benefits for dependents after a fatal accident. It also includes employers liability, which protects your business if an injured employee sues. It does not cover off-the-clock injuries, ordinary commutes, intoxication, self-harm, or independent contractors.
How much does workers comp insurance cost?
Workers comp is priced per $100 of payroll based on your industry class code, then adjusted by your experience modification rate. A low-risk office might pay $0.15 to $0.40 per $100 of payroll, while contractors pay $2 to $8 and high-hazard trades like roofing pay more. Your actual cost depends on payroll, classifications, claims history, and state.
Does workers comp cover part-time and seasonal employees?
Yes. In most states, workers comp requirements apply regardless of whether an employee is full-time, part-time, or seasonal. If they are on your payroll, they generally need to be covered.
Can business owners exempt themselves?
Often, but it depends on your state and business structure. Corporate officers and active LLC members can frequently elect to exclude themselves in writing, while sole proprietors with no employees are usually not required to cover themselves. The rules and ownership thresholds vary by state, so it should always be documented properly.
Do you write workers comp outside Illinois?
Yes. We are headquartered in Illinois but write workers compensation for employers in most states nationwide, with a focus on commercial lines clients across the US. If you operate in multiple states, we coordinate coverage so every location is compliant.
Get a Free Workers Comp Review
If your policy renews in the next 90 days or has never had an independent review, a 15-minute conversation can catch classification errors and find savings. We shop the market and bind fast.
Get My Quote Call 833-776-4671Reviewed by Neal Fusco, VP Commercial Lines
Neal leads commercial and specialty coverage at Pro Insurance Group, helping employers across Illinois and 40-plus states secure the right protection at competitive rates.