01/14/2026
How does workers' comp insurance work? Call us if you have questions:
Each state administers its own workers’ comp program through a commission or board, meaning each state operates differently. Typically these state agencies ensure businesses comply with workers’ comp laws, collect relevant accident information, and make final decisions on cases.
In most states, employers must maintain records of any accidents, report accidents to state agencies, and inform their insurer of any accident within a specified timeframe.
Businesses that are protected by workers’ comp can easily request a Certificate of Insurance to show proof of coverage if needed. For some businesses, this is particularly important because they may be required to provide proof of insurance before any work can begin. This is common in the construction industry, for example.
When a business buys a policy, the premium (price) is estimated. To ensure the correct premium is ultimately charged, insurers will perform an audit after the most recent policy period has ended. Insurers look back at the prior period to verify that the upfront pricing was accurate. If there are any material differences in the business risk or makeup of the workforce, the insurer can collect more premium or provide a credit. Learn more.
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