What is workers’ compensation?

Workers ’ compensation provides medical benefits and wage replacement to employees injured on the job. Not all businesses are required to provide workers’ compensation, depending on the classification of the business and number of employees.

Workers’ compensation rates and coverage requirements are mandated by the state and are determined based on the classification of business and number of employees. There are hundreds of classifications of business. Individual job positions can be classed separately. More dangerous jobs are rated higher; for example, a roofing company’s classification would be more costly than a telemarketing business’s classification. The National Council on Compensation Insurance is responsible for the compensation codes. Rates are determined per $100 of payroll.

Depending on the type of business, various premium adjustment or credit programs may be available:

Contracting Classification Premium Adjustment Program – credit may be applied based on the class codes.

Drug-free Workplace Credit Program- Submission of a Drug-free Workplace application is required to receive credit and must be resubmitted each year.
Employer Safety Premium Credit Program- Application for Employer Workplace Safety Program must be submitted to receive credit, and re-submitted each year there after.