The Employer's Guide to Workers' Comp Insurance
💼 The Employer’s Guide to Workers’ Comp Insurance
What It Is, Why You Need It, and How to Avoid Legal & Financial Disaster (Without Pulling Your Hair Out)
INTRODUCTION
If you’re running a business, you’re probably wearing so many hats you could open your own Lids franchise. But unless you moonlight as an insurance agent, workers’ compensation might be somewhere between “I’ll get to it” and “what even is that?”
Don’t sweat it. This guide breaks down what workers’ comp insurance actually is, who needs it (hint: probably you), what it covers, and how GMAC Works makes the whole process way less painful than you’d expect.
🏥 What Is Workers’ Compensation Insurance?
Workers’ compensation is business insurance that helps cover your employees’ medical costs and lost wages if they’re injured or become ill because of work. It also protects you from lawsuits. Think of it like a safety net for both your crew and your company.
What Does Workers’ Comp Cover?
Medical Expenses: ER visits, surgery, physical therapy, prescriptions — you name it.
Lost Wages: If your employee can’t work, workers’ comp pays part of their income.
Rehabilitation & Retraining: For employees who can’t return to their original job.
Permanent Disability: Lifelong benefits for workers with severe injuries.
Death Benefits: For dependents if the unthinkable happens.
👉 Example: A construction worker tears their rotator cuff lifting equipment. Workers’ comp covers the surgery, recovery, and time off — and protects your business from footing that bill out of pocket.
Why It Matters
It’s not just about checking a legal box — it’s about being the kind of business owner your team can rely on when life hits hard.
💡 FACT: According to the National Safety Council, the average cost of a workplace injury involving time off is over $40,000 per claim. Source
🤔 Who Needs It?
Short answer: Nearly everyone.
Most states require workers’ comp if you have even one employee — including part-time, seasonal, or temporary workers. You don’t need to be a big company to be legally on the hook.
You likely need workers’ comp if:
You have any W-2 employees (even just one)
You use subcontractors in states that require their coverage
You work in a high-risk industry like roofing, carpentry, solar, or landscaping
You want to land bigger contracts that require proof of coverage
You want to avoid paying fines of up to $1,000/day for noncompliance (NFIB Reference)
⚙️ How It Works
Here’s what happens when a workplace injury occurs:
Your employee gets injured or sick on the job.
You file a workers’ comp claim through your insurance provider.
The policy covers:
Medical treatment
Lost wages (typically 66% of regular pay)
Rehabilitation and retraining
Permanent or partial disability
Funeral expenses (if applicable)
The employee waives their right to sue you (this is called the “exclusive remedy” rule).
Boom. No lawsuits, no courtroom drama, and your employee gets the help they need.
🚫 What’s Covered (and What’s Not)
✅ Covered:
Injuries on the job (falls, burns, lacerations)
Work-related illnesses (respiratory, repetitive strain, exposure)
Ongoing disability or loss of function
Death benefits
❌ Not Covered:
Injuries off the clock
Drug- or alcohol-related accidents
Self-inflicted injuries
Independent contractors (unless mandated)
🦄 Why GMAC Works?
Let’s face it — there are a million insurance brokers out there.
But GMAC Works isn’t your typical “set it and forget it” agency. We’re built for busy, blue-collar business owners who don’t have time to decode insurance fine print or sit on hold with adjusters all day.
Here’s how we’re different:
✅ We Shop the Market for You
Get quotes from dozens of A-rated carriers without lifting a finger.
✅ One Dashboard, One Login
Combine your policy with HR tools, payroll integration, and compliance tracking.
✅ Real People. Real Help.
No chatbots. No runaround. Just a knowledgeable human ready to talk.
✅ PEO Power-Up
Need full HR and payroll support? We can bundle that into your policy for a fraction of the cost.
✅ Lightning-Fast COIs and Claims Help
Need proof of insurance now to land a job? We’ve got you. Need to file a claim? We’re on it — and we make sure it gets handled.
🧠 Final Thoughts
You work hard to grow your business. Workers’ comp helps you protect it. Whether you’re hiring your first employee or managing a crew of 50, don’t leave your business vulnerable to risk, lawsuits, or six-figure medical bills.
Testimonial:
“After one of my guys took a spill on a job site and needed surgery, GMAC Works jumped in with lightning-fast support and handled everything. From filing the claim to walking me through the paperwork, they had my back. I didn’t lose the client, and my crew felt taken care of. Total game-changer.”
— Sarah R., General Contractor, Houston TX
🚀 Ready to Protect Your Business?
Click below to get your free compliance checkup or instant quote. No pressure. No BS.
📞 Or call us to speak with a real human.
GMAC Works — We help you run your business, so you can grow it (and maybe even take a day off).
