Workers' Compensation

Workers’ compensation insurance for small business

Run your business with confidence. Get a free, no obligation quote from Automatic Data Processing Insurance Agency, Inc.

Prepare for the unexpected with simplified insurance and pay-as-you-go solutions

When you work with ADP®, you connect with the licensed agents of our affiliate agency, the Automatic Data Processing Insurance Agency (ADPIA™)1, who are committed to simplifying insurance so you can get the coverage that’s best for you and your business. We can also help you better manage cash flow during unsteady times with our Pay-by-Pay® Premium Payment Program.

Why you need workers’ comp insurance

The answer is simple:

  • Most states require businesses with one or more employees to have workers’ compensation insurance; only a few states don’t require it
  • States that require workers' comp typically impose significant penalties for companies that don’t comply
  • Coverage is necessary regardless of fault; injured workers are typically eligible for workers’ compensation, even if their injuries resulted from their own negligence
  • Health or medical insurance doesn’t substitute for workers’ comp; employees are only covered for on-the-job injuries or job-related illnesses

Learn more about what workers’ compensation insurance is, and why you need it, from our affiliate agency, ADPIA.

ADPIA Workers’ Compensation Insurance

Pay-by-Pay may eliminate premium binder payments, improve cash flow and simplify your audits, making a direct impact on your bottom line.2

Integrate with payroll and improve cash flow

What would you do if you had extra cash to put back into your business? ADP’s Pay-by-Pay Premium Payment Program is a unique solution that offers your company a simple and efficient way to pay your premium:

  • No upfront premium deposit is required3, which may free up funds that you can invest in your business
  • Premium payments are based on actual, not estimated, payroll data and carrier rates, to minimize over or underpayments at your year-end audit
  • Payments are spread over your company’s payroll cycle so you know what to expect and when

Compare ADP's Pay-by-Pay to traditional premium payment programs.

Traditional Premium Payments

A 25-100% premium deposit required

Premium based on estimated annual payroll

Limited payment terms (e.g. monthly, quarterly, semi-annual)

Greater risk of additional premium due at year-end audit

Need to hand write checks and send via mail risking late payment or cancellation

ADP Pay-By-Pay Premium Payment Program

No premium deposit required

Premium based on actual payroll and carrier rates

Payments spread-out over company's payroll cycle

Reduced risk of over or underpayment at year-end audit

Eliminates writing checks and assures accurate, on-time payments

Learn more about our Pay-by-Pay® Premium Payment Program.

Guidance from seasoned insurance professionals

Working with ADPIA licensed insurance professionals, you'll receive knowledgeable and supportive guidance — from choosing the right coverage and carrier to helping you keep on top of requirements and regulatory changes.

The licensed insurance professionals of ADPIA are the best at what they do. They’ve worked with more than 170,000 businesses of all sizes to help them choose the right coverage.

To receive a quote for workers’ compensation coverage from one or more leading national and regional carriers, contact ADPIA.

Get the full value of integration

Manage insurance online, on your terms. Whether you need competitive proposals from multiple carriers, advice from a licensed agent, detailed reports or more, you can receive the full value of integrating payroll with select insurance policies when you partner with ADPIA.

Reach out to ADPIA for details.

Get back more time in your day by managing your insurance and payroll all in one platform

With a workers’ compensation policy brokered through Automatic Data Processing Insurance Agency, Inc., paired with ADP’s Pay-by-Pay® Premium Payment Program, you can now manage your workers’ compensation policy directly from your ADP payroll system.4

Get back more time in your day by managing your insurance and payroll all in one platform

See what others say about working with ADPIA

Workers’ compensation FAQs*

What is workers' compensation and why is it important?

Workers’ compensation is insurance that provides benefits, such as medical care and compensation for lost income, to employees who suffer an accidental injury or occupational disease on the job. It’s important because it helps safeguard employers from the financial consequences of a workplace injury or illness – regardless of who is at fault. In most states, it’s also the law.

What is the difference between general liability and workers' compensation insurance?

General liability insurance may cover losses to property or physical injuries caused to third parties by an employer’s business operations, products or employees. Workers’ compensation insurance, in contrast, helps protect employers and employees if a workplace accident or illness occurs.

What does workers' compensation insurance cover?

Employees may be eligible for workers’ compensation if they suffer an accident or injury while working. Illnesses that occur as a result of exposure in the work environment may also be covered by the employer’s policy.

What doesn't workers' compensation insurance cover?

Accidents, injuries and illnesses that occur outside of the workplace, as well as health conditions that existed prior to employment, are generally not covered by workers’ compensation.

Are contractors and volunteers covered under workers’ compensation?

Employers may be responsible for covering independent contractors, unless the contractor provides written proof of workers’ compensation insurance, i.e., a certificate of insurance issued by the carrier who issues the policy (or the carrier’s authorized representative).

Does workers' compensation insurance help cover fatal accidents?

Yes, death and funeral service benefits may be paid to eligible dependents after a work-related illness or injury results in an employee’s death. These benefits can vary based on the workers’ compensation policy.

Does workers' compensation protect against employee lawsuits?

Workers’ compensation helps protect employers from lawsuits brought by employees who suffer a job-related injury or illness. Liability coverage may also be part of a workers’ compensation policy. It typically includes:

  • Protection from lawsuits brought by outside individuals or companies that may be adversely affected by an injury to a worker
  • Policy limit pay outs – per employee, per injury and per illness
  • Coverage of legal fees, court costs, damages and settlements

Is workers’ compensation insurance required by law?

Regulations vary by state, but most states require employers to purchase workers’ compensation insurance if they have one or more employees. Failing to comply can lead to civil fines and criminal penalties. In some cases, the state may even shut down the employer’s operations.

Which professions need workers' compensation insurance?

In states with mandatory coverage, employers generally must purchase workers’ compensation once they hire their first employee, regardless of their profession. In states with elective coverage, workers’ compensation may be optional for some employers based on their type of business or their employee head count. Employers should check with their state for specific requirements.

Do self-employed business owners and independent contractors need workers’ compensation insurance?

Workers’ compensation generally isn’t required for independent contractors, but regulations do vary by state and industry. Consult a licensed insurance agent to better understand your unique business requirements.

How can small business owners save money on workers' compensation insurance?

Premium payment programs can help small business owners better manage their cash flow. With these plans, employers pay their premiums over the term of their policy, rather than upfront. The premiums are also calculated using real payroll data and carrier rates, not estimates, which can help minimize over or underpayments at year-end audits.

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1 Automatic Data Processing Insurance Agency, Inc. (ADPIA) is an affiliate of ADP, Inc. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners; 1 ADP Blvd., Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all states.

2 State fees and mandatory state assessments may still apply.

3 While premium deposits may be eliminated by most carriers, mandatory state assessment fees may be required in some states.

4 Requires latest version of RUN and/or Workforce Now

* FAQs are general and not intended as tax or legal advice. If you have any questions, contact a tax or legal professional.