Every business owner wants a thriving, productive workplace. But when accidents happen—and they do—workers’ compensation insurance can make the difference between a temporary setback and a major disruption.
At Pepper, Johnstone & Company, we help businesses across industries and across the nation protect what matters most: their people and their operations.
After all, workers’ compensation and liability insurance are more than just regulatory boxes to check. They’re one of the most critical tools in your risk management strategy.
What Business Owners Are Asking About Workers’ Compensation
Let’s take a closer look at how workers’ comp works, what workers’ compensation insurance covers, and how to approach it proactively to protect your business, support your employees, and control costs.
What is Workers’ Compensation Insurance?
We tend to think of workers’ compensation insurance as something that just protects workers. However, it’s designed to protect both employers and employees when a workplace injury or illness occurs. In most states, it’s required by law once you reach a certain number of employees, but the benefits go well beyond compliance.
How Does Workers’ Comp Work?
If an employee is injured on the job or develops a work-related illness, workers’ compensation insurance helps cover medical treatment, lost wages during recovery, and even rehabilitation costs. In exchange, it typically limits the employee’s ability to sue the employer for damages related to the incident.
In this way, workers’ compensation benefits are designed to provide a financial safety net for injured employees while also protecting the business from litigation. This protection allows business owners to focus on continuity while providing injured workers with the support they need to recover.
What Does Workers’ Compensation Cover?
Your exact coverage depends on the policy, but most workers’ compensation insurance includes:
Medical care: Doctor visits, hospital stays, prescriptions, and surgery
Rehabilitation: Physical therapy, occupational therapy, or vocational retraining
Wage replacement: A portion of lost wages while the employee recovers
Disability benefits: For temporary or permanent impairment
Death benefits: Funeral costs and support for surviving dependents
Workers’ compensation insurance covers these essential areas so you can provide meaningful support while keeping your business on track.
It’s also worth noting that workers’ compensation can protect your business from costly litigation, especially in high-risk industries like construction, metalworking, and logistics.
Do I Need Workers’ Comp Insurance?
If you employ people, the answer is almost certainly yes.
Most states require businesses with even a single employee to carry workers’ compensation coverage. Texas is the only state that doesn’t mandate it, though the specific requirements laid out in other state laws vary.
But beyond legal obligations, the real question is: Can your business afford to be without it?
Small businesses, sole proprietors, and even some independent contractors may wonder if they’re required to carry workers’ compensation insurance. The answer depends on your state’s workers’ compensation law, the nature of your business, and how many people you employ.
That said, even when the requirements are limited, carrying robust workers’ compensation insurance is often a good idea to protect your livelihood and limit liability.
A single claim could
cost tens of thousands of dollars, plus legal fees, reputational damage, and lost productivity. Workers’ comp helps prevent these worst-case scenarios and demonstrates that you value your team’s safety and well-being.
How to Get Workers’ Compensation Insurance
If you’re a business owner, you’ve got a lot on your plate. Thankfully, the process of obtaining workers’ comp insurance is simpler than you might think.
Work with an independent agent. At Pepper, Johnstone & Company, we work with top-rated insurance companies to compare options and tailor your policy to your unique industry risks.
Evaluate your workforce. We’ll help you understand your exposures based on job roles, locations, and any past claims history.
Build a package. Workers’ comp can be bundled with other business coverages like general liability, commercial auto, or an umbrella policy for broader protection.
Proactive Strategies for Managing Claims and Controlling Costs
Claims are costly—both in dollars and in downtime, morale, and operational impact. Fortunately, there are ways to manage them proactively:
Promote a safety-first culture: Clear procedures, PPE training, and hazard assessments go a long way in preventing accidents.
Create a return-to-work program: Structured support for modified duties or phased reintegration helps reduce lost time claims.
Investigate incidents promptly: Document everything and take steps to prevent repeat events.
Review your claims regularly: Patterns in timing, departments, or injury types may signal a deeper issue.
Workers’ compensation insurance costs can fluctuate based on your claim history, workforce size, and industry risk level. That’s why it’s smart to take a proactive approach to workplace safety and policy management.
Partner with Pepper, Johnstone & Company
You don’t have to navigate the complexities of workers’ compensation alone. As an independent insurance agency, Pepper, Johnstone & Company works for you, not the insurance carriers. We’ll help you find the right coverage, mitigate your risks, and advocate for your business every step of the way.
Whether you’re hiring your first employee or reviewing your current policy for better rates and protections, we’re here to guide you through it.
Get the Protection Your Business Deserves
Workers' compensation insurance is a legal requirement in most cases, but more importantly, it’s a smart investment in your business and your people. To learn more about workers’ comp benefits or build a plan tailored to your needs,
request a quote today or call us at
866-381-5821.