Workers Compensation

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Basics of Workers Compensation Insurance

As a small business owner, you may think you do not need to carry workers compensation insurance. If you work in a low-risk field, why is it even necessary? Workers compensation protects you and your employees in ways you may not even consider. Keep reading for all you need to know about workers compensation insurance in Louisiana.  

Workers Compensation Insurance - The Craven Agency

What is Workers Compensation Insurance?

Workers compensation insurance pays for an employee’s medical payments and any missed wages that result in an accident occurring at work. For example, if an employee trips and falls at work, any treatment needed can be paid through workers compensation insurance. It can also cover rehabilitation expenses and death benefits, depending on the severity of the incident.

Why Do I Need Workers Compensation Insurance?

Almost all states have laws requiring businesses to carry workers compensation insurance, and Louisiana is no exception. Louisiana requires all businesses with at least one employee to carry workers comp insurance, including part-time, temporary, or seasonal employees. Failure to do so can result in fines up to $10,000.

However, even despite the legal obligation, workers comp is essential for any business with employees. Suppose an employee is injured at work, especially if the injury leaves the employee permanently disabled or worse. In these scenarios, the medical bills incurred can be financially devastating if the business is solely responsible for paying them. Luckily, workers compensation insurance will cover the cost of any medical bills on top of the employee’s lost wages. In addition, paying the lost wages and medical care of any injured employee can potentially help curb lawsuits as well.

In many cases, workers compensation insurers will also provide resources to help reduce the risk of workplace accidents. Insurers may offer loss control services such as ergonomic assessments on employee workstations or reviews of office buildings for hazards. These services can potentially save the company thousands of dollars by proactively addressing any concerns before injuries occur. 

What Are The Laws in Louisiana?

When it comes to workers compensation insurance, business owners should be aware of state laws. Louisiana requires the following:

  • Any business with more than one employee is required to carry workers compensation insurance.
  • There are exceptions made for certain industries, but it’s best to discuss with a professional to confirm.
  • Businesses must purchase workers compensation insurance from an authorized insurance company licensed to conduct business in Louisiana, or businesses may opt to self-insure.
  • Employers are also required to display their workers compensation insurer’s name and contact information somewhere in the workplace visible to all employees.

How Do I Purchase a Workers Compensation Policy?

Louisiana provides a list of insurance companies authorized to write workers compensation policies in the state for reference. But workers compensation policies are typically purchased through a trusted insurance agency. The price of your policy is based on the type of business you own, the estimated amount of your total payroll, and your prior claims, if any. So it’s a great idea to gather that information before contacting a company for a quote.

When it comes to protecting your business and employees, our experts are ready and willing to help get you the coverage you need. Contact The Craven Agency for a quote!

Contact The Craven Agency today! Serving Shreveport, Bossier City, Minden, Ruston, Monroe and the surrounding communities in Louisiana and the Ark-La-Tex regions.​


We'd love to talk through any of your business or personal needs and build the right insurance policy for you.

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