If you are an employer with one or more employees, state laws typically require you to carry a workers' compensation policy. Workers' compensation "workers' comp" protects you as an employer as well as your employees. Generally, workers' comp payouts can cover portions of lost wages, costs of care, as well as medical bills for an employee that is injured at work. Workers' comp insurance can also protect the employer from a lawsuit.
Certain carriers will write stand-alone workers' comp polices, however, many times it's is beneficial for employers to purcahse workers' comp and business insurance from the same carrier. Workers' comp rates are determined by the state and vary based on the type work being engaged in. Once an employer reaches a certain premium threshold they are given an experience modification factor or "mod score". Mod scores are primarily based off of loss history and can impact the amount of premium an employer pays for workers' comp.