What Is Workers’ Compensation Insurance?
Workers’ compensation insurance provides financial protection for employees who suffer work-related injuries or illnesses and for the employers who are required by law to carry it. When an employee is injured on the job — whether in a factory accident, a slip and fall, a vehicle accident during work duties, or a gradual illness from occupational exposure — workers’ compensation pays for medical treatment, a portion of lost wages, and rehabilitation costs. In the event of a fatality, it provides death benefits to the employee’s family.
GLS Insurance provides workers’ compensation insurance for businesses of all sizes across all 17 states in our licensed territory: Arkansas, Arizona, Colorado, Florida, Georgia, Iowa, Illinois, Indiana, Kansas, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, South Dakota, Tennessee, and Texas.
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Pre-Hire Physical
Risk Factor
Are you about to hire your next workers' compensation claim? In an effort to get a position filled quickly, you may take shortcuts that could cost you thousands of dollars.
Solution
Prospective employees should be required to complete a pre-hire physical. A copy of the intended job description can then be given to the medical provider with the physical requirements of the position. This helps to ensure only those capable of doing the job are hired and keeps other employees safe.
Education and Injury Reporting
Risk Factor
Oftentimes employees don’t understand the workers' compensation process and may be afraid to report a claim for fear of losing their job or impacting a daily count of injury-free days that are tied to an incentive program.
Solution
Educate employees on the workers' compensation system. During the hiring process, consider explaining how workers' compensation coverage protects your employee when an injury occurs. Your employees should understand that it is their responsibility to report an injury immediately and follow the company’s guidelines for seeking medical attention. Explain your return to work policy and have your employees sign an agreement stating they understand the process.
Communication
Risk Factor
Your employee may become injured and you might be tempted to rely on someone else to communicate with them. As a result, your employee may be confused by the workers' compensation process and unsure where to turn.
Solution
You and your supervisors need to stay in constant communication with your employees. Your insurance broker can provide some coaching and guidance throughout the process. Above all, your employees should feel that you care about their injuries and that you will be involved in helping them recover. Your direct supervisors play a key role in this process and should be trained to effectively communicate with your employees throughout the injury.
Return to Work Program
Risk Factor
When your employees become injured, they may need time to recover. As an employer, you may be tempted to rely solely on the workers' compensation insurance company and/or your employee’s medical provider to communicate throughout the process. If you do, the process can become unnecessarily prolonged.
Solution
As the employer, let your insurance company and your employee’s medical provider know that you have a return to work program in place. Ask the medical provider to refer to the job description that has been provided for the injured employee. As soon as the employee is medically cleared, offer a light duty position and ask them to report to work. If needed, your employee can continue to receive treatment while they continue to recover.
Payroll Audits and EMR
Risk Factor
Statistically, your company’s Experience Modification Rate (EMR) has more than a 70% chance of being incorrect. Your EMR is a number used by insurance companies to gauge any past cost of injuries and future chances of risk. In addition, over 80% of payroll audits are done incorrectly. Both factors impact your workers' compensation coverage.
Solution
Trust your insurance advisor and have them assist and advocate during the annual payroll audit conducted by the insurance company. Your agent should also monitor all claims, but especially claims reserved over a $10,000 threshold. Larger claims should have a quarterly report prepared by your insurance agent to let you know the status of the claim. Your agent should work with your insurance company’s claims adjustor to close any claims as quickly as possible.
Medical Provider Communication
Risk Factor
Claims can remain open longer than needed due to poor communication between you and your employee’s medical provider. As a result, you may be unaware that your employee is well enough to return to work on a modified basis.
Solution
Get to know the doctors that are helping your employee heal. Your insurance broker should foster this relationship by assisting you in the selection of the medical provider prior to a claim. Meet with the medical provider, interview them, tour their facilities, ask them to tour your location, and explain your return to work program. Job descriptions can be provided to the medical provider and an agreement of services can be achieved. Once a claim takes place, a clear line of communication should be established so you are kept aware of your employee’s status.
Safety Training
Risk Factor
Sometimes employees are trained to do a job well, but are not trained to do their job safely. Many work-related injuries can be avoided by effective training.
Solution
Your insurance broker should be able to organize monthly training classes. Many insurance carriers offer training tools at no charge and your broker can help you utilize these tools to your advantage. For example, topics such as proper lifting techniques can be critical for many job functions. Also, using tools like payroll stuffers can be very effective.
OSHA Inspections
Risk Factor
Many employers are concerned about their next OSHA visit. Worried about citations and fines, employers see OSHA as the enemy. Sound familiar?
Solution
OSHA's On-site Consultation Program offers free and confidential safety and occupational health advice to small and medium-sized businesses in all states across the country, with priority given to high-hazard worksites. On-site Consultation services are separate from enforcement and do not result in penalties or citations. Consultants from state agencies or universities work with employers to identify workplace hazards, provide advice on compliance with OSHA standards, and assist in establishing injury and illness prevention programs.
Why Workers’ Compensation Is More Than a Legal Requirement
Workers’ compensation is legally required for employers with employees in virtually every state — but the real value goes beyond compliance. Without workers’ comp, a single serious workplace injury can generate hundreds of thousands of dollars in medical costs, lost wage liability, and legal expenses that most businesses cannot absorb. Workers’ comp transfers that financial risk to the insurer and allows your business to recover and move forward.
There is also a significant employee relations dimension. Employees who know their employer carries workers’ comp and understands how to manage a claim process feel more secure and valued. GLS Insurance helps businesses not only obtain the right coverage but also implement the claims management, return-to-work, and injury prevention practices that reduce both claim frequency and severity over time.
Key Elements of an Effective Workers’ Compensation Program
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Pre-Hire Physicals — Ensure candidates can safely perform the essential functions of the position before extending a job offer. A properly conducted pre-hire physical, with job description provided to the medical provider, reduces injury risk from day one.
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Employee Education and Injury Reporting — Employees who understand the workers’ comp process — and feel safe reporting injuries without fear of retaliation — tend to report injuries sooner, receive earlier treatment, and return to work faster. Delayed reporting almost always increases claim costs.
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Return to Work Programs — Having a documented return-to-work policy and the ability to offer modified duty work while an employee recovers dramatically reduces the duration and cost of workers’ comp claims. GLS Insurance helps clients establish and document these programs.
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Payroll Audit Accuracy — Your workers’ comp premium is based on your payroll by classification code. Payroll audits conducted by insurance companies have a documented history of errors. GLS Insurance advocates for you during the audit process to ensure you are not overpaying.
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Experience Modification Rate (EMR) Management — Your EMR — the factor applied to your workers’ comp premium based on your historical claims — has more than a 70% chance of being incorrectly calculated, according to industry data. GLS Insurance monitors your EMR, disputes errors, and helps implement the safety and claims management practices that drive it down over time.
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Medical Provider Relationships — Establishing relationships with occupational medicine providers before injuries occur improves claim outcomes, speeds return to work, and reduces litigation. GLS Insurance can help facilitate these relationships.
Workers’ Compensation Rates and Requirements Across Our 17 States
Workers’ compensation is regulated at the state level, and rates, requirements, and systems vary significantly across our 17-state territory. Texas is unique as the only state in the country where workers’ comp is not mandatory for most private employers (though opting out carries significant legal exposure). Oklahoma has its own opt-out alternative. South Dakota and Nebraska have lower average workers’ comp rates than Florida, Illinois, or California. High-risk industries like roofing, logging, and commercial trucking pay significantly more than office workers regardless of state.
GLS Insurance’s agents understand the workers’ comp environment in each of our 17 states and can help you navigate the differences — whether you have employees in a single state or across multiple states simultaneously.
Workers’ Compensation for Specific Industries
Workers’ comp rates and risk management strategies differ meaningfully by industry. GLS Insurance has particular experience in the following high-claims-rate industries within our service territory:
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Construction and Contractor Trades (roofing, electrical, HVAC, plumbing, drywall, framing)
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Healthcare and Social Services
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Manufacturing and Industrial Operations
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Trucking, Delivery, and Transportation
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Landscaping and Groundskeeping
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Food Service and Hospitality
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Child Care and Education
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Warehousing and Distribution
Frequently Asked Questions: Workers’ Compensation
Is workers’ compensation required in all 17 states where GLS Insurance operates?
Workers’ compensation is required for employers with employees in 16 of the 17 states in our territory. Texas is the notable exception — it does not require most private employers to carry workers’ comp, though opting out carries significant legal liability risk. Most other states require it once you have at least one employee, though some states have minimum employee thresholds. GLS Insurance will confirm the specific requirements in every state where you have employees.
How is my workers’ compensation premium calculated?
Your workers’ comp premium is based on your payroll by job classification code, multiplied by a class rate set by the state (or in some states, by the insurance carrier), and then adjusted by your Experience Modification Rate (EMR). The EMR reflects your claims history relative to other businesses in your industry — an EMR below 1.0 means you are safer than average (and pay less), while an EMR above 1.0 means you have had more claims (and pay more).
What is an Experience Modification Rate (EMR) and why does it matter?
Your EMR is a multiplier applied to your workers’ comp premium based on your historical claims experience compared to other businesses in your industry classification. An EMR of 0.85 saves you 15% on your premium. An EMR of 1.25 costs you 25% more. For large payroll businesses, a single point change in EMR can mean thousands of dollars annually. GLS Insurance actively monitors and advocates for your EMR accuracy and helps implement practices to reduce it over time.
Can I get workers’ comp for just one employee?
Yes. Most carriers will write workers’ comp policies for businesses with a single employee. In some states, sole proprietors and single-member LLCs can elect to cover themselves under a workers’ comp policy as well. GLS Insurance works with carriers that write small employer policies in all 17 states.
We have employees in multiple states. How does that work?
Your workers’ comp policy needs to specifically list all states where you have employees. Most policies include an ‘all other states’ endorsement, but this provides limited coverage and may not satisfy specific state filing requirements. GLS Insurance coordinates proper multi-state workers’ comp programs for employers operating across our full 17-state territory
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