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As a Pennsylvania business owner, you have a responsibility to provide workers compensation insurance for employees and even contract workers or volunteers. While Pennsylvania workers compensation insurance is largely geared towards protecting workers and their families against the risk of injury, illness or even death while on the clock, business owners are also provided for within the policy. Taking time out to understand what workers compensation is and how it works can go a long way towards researching and scouting out the most comprehensive coverage at the most cost effective rates.
Workers compensation is known by many names. Work comp, workers' comp and workman's comp are all just different ways of describing the same insurance coverage. This coverage is specifically designed to offer payment for injuries/illnesses that were caused via the scope of an employee's role within the company. This coverage provides for a worker and their families in the event of injuries, disability, disease or death directly related to their employment within an organization.
First, Workers Compensation is required by the State of Pennsylvania. Workers compensation generally covers options like weekly payments in place of wages (allowing it to serve largely like a disability policy), compensation for past, present and future economic loss, reimbursement or direct payment for medical expenses up to and including death and dismemberment benefits. However, by taking advantage of PA workers compensation insurance, employees give up the right to sue for the tort of negligence, including pain and suffering or punitive damages.
As an employer, you are liable for injuries and illnesses sustained in the line of duty. Without insurance protecting you against this eventuality, you could sustain substantial damages in a court of law. In 2010, 3.1 million non-fatal work injuries occurred across the US, averaging out to about 3.5 cases per 100 full-time employees (Bureau of Workers' Compensation in Department of Labor & Industry for Pennsylvania). The year prior, 88,973 lost-time injuries and illnesses happened in Pennsylvania alone.
The basic breakdown of a workers compensation policy are pretty simple and straightforward.
Section A: What is covered under the policy.
Section B: Terms of the insurance company's pay out.
Section C: Explanation of the right to defend claims.
Section D: Additional things that will be paid for (like court costs, fees, etc.)
Section E: How much you as an employer will pay
Section G: The details of your right of recovery.
Section H: The legal details and provisos within the policy.
While the policy obtained may not follow this formula identically, this should be enough to give you a fair understanding of what you can expect.
Workers compensation insurance policies can be upgraded to include additional endorsements. Some of the most popular of these optional endorsements include Aircraft Endorsements, Alternate Employer Endorsements, all states endorsement, Domestic and Agricultural Exclusions plus Voluntary Compensation and Employers Liability Coverage. While this is not an exhaustive list, it should serve to illustrate that you can customize and tailor your policy plans to offer your workers more extensive coverage and safety nets.
Work comp rates are calculated based on payroll per hundred and then each worker is given a risk level classification. Then, experience modifications and other adjustments are made at the individual and past company losses and paid claims are then taken into account. Payments are made in one of several methods to include annual work comp insurance with annual reporting, annual work comp insurance with monthly reporting, or 3rd party Professional Employers Organization (PEO) memberships.
When it comes to creating your PA workers compensation insurance coverage, don't take short cuts or cut corners. Poor claims handling is costly and miscalculations lead to ballooning premiums and unnecessary costs. When in doubt, seek the advice of the experts.
APPLY ONLINE FOR A FREE WORKERS COMPENSATION INSURANCE QUOTATION 
Business Insurance
• Commercial General Liability Insurance
• Commercial Property Insurance
• Business Auto Insurance
• Workers Compensation
• Umbrella / Excess Liability Insurance
• Business Owners Life Insurance
• Professional Liability
• Bonds
• Crime
• Business Income / Extra Expense
• Clubs and Associations Insurance
• Commercial Vehicle (ie. Limo, long haul)
• Boiler & Machinery
• Farm Liability Insurance
• Group Health Insurance
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