When it comes to running a business, workers compensation insurance is one of the most confusing, yet important aspects. With a multitude of providers, different types of policies, and, of course, the cost, this is a hurdle almost all business owners dread going through in the great state of Louisiana. To aide business owners in the jungle that is workers’ comp Insurance, we have put together a list of the 5 best providers in the state. We are providing you with all of the information needed to get you the best coverage and feel confident in your decision.
- The 5 best workers compensation insurance companies in Louisiana
- The Louisiana workers comp laws
- What does workers comp insurance cover in Louisiana?
- How much does workers’ comp insurance cost in Louisiana?
- How to find cheap workers comp insurance in Louisiana?
- Are there penalties for not having workers’ comp insurance in Louisiana?
- How do I file a workers’ compensation claim in Louisiana?
- How is workers compensation insurance different from general liability insurance?
The 5 best workers compensation insurance companies in Louisiana
After studying more than 20 companies offering workers comp insurance in the state of Louisiana, below are our recommendations for the 5 best workers’ comp insurance providers. When looking for our quotes, we used the following characteristics:
- A commercial cleaning service
- 5 full-time employees
- $600,000 in revenue, and $350,000 in annual payroll
- CoverWallet: Best for comparing several online quotes
- Pie: Best for affordable prices
- The Hartford: Best Overall
- Employers: Best for many discount programs
- AmTrust Financial: Best for customized coverages for small businesses
CoverWallet: Best for comparing several online quotes
Quote: $1,155/ month
CoverWallet is an excellent choice for your workers’ comp insurance needs. You can seamlessly compare and contrast multiple providers in their network at once, and their reviews rave about them having an easy-to-use platform. This is further demonstrated by their A- rating with the Better Business Bureau.
Pie: Best for affordable prices
Quote: $793/ month
If cost is a major concern for you, we highly recommend using Pie. Since they specialize in small business workers’ compensation insurance, you can expect a personalized plan with great customer service. Since Pie is not in the CoverWallet’s network of providers, you may want to get quotes from Pie and CoverWallet and compare these quotes to find the best one for you.
When you compare quotes, make sure you compare apples-to-apples, ie. different quotes should still have the same coverages before you compare the monthly premiums. In several cases, we have learned that while monthly premiums may be cheaper, they are actually for lower coverages.
The Hartford: Best Overall
Quote: ~$1,333/ month
The Hartford is one of the leading business insurance companies in the country. They are known for being the most ethical company. They offer several business insurance coverages, including workers comp insurance, general liability insurance, business owners’ policy, professional liability insurance, and commercial property insurance, and many others. They are the most well-rounded company on our list. If you are looking for more than just workers comp insurance, they can be a great option. Be sure to use their quote tool on their website to combine with other business insurance policies that your business might need.
Employers: Best for many discount programs
EMPLOYERS Insurance has more than a century’s worth of backing which shows they take their clients’ needs first. A stable, future-facing company, EMPLOYERS offers multiple discounts for businesses including “Good Hygiene Procedures”, “Safe Premises” and more! They reward businesses for taking safety seriously, and we commend them for that!
Unfortunately, Employers do not offer online quotes. You have to contact their agents to get a quote.
AmTrust Financial: Best for customized coverages for small businesses
AmTrust, a multinational insurance company, specializes in small-business and non-profit insurance. They offer business insurance coverages to companies of low to medium risks only. If you are in the high risk industries such as construction, you have to look elsewhere.
By focusing on small businesses in low and medium risk industries only, AmTrust is able to provide highly customized insurance packages to these companies. If your company operates in the industry they cover in Louisiana, you may want to consider getting a quote from them.
Similar to Employers, AmTrust doesn’t offer quotes online, you have to contact their agents to get a quote.
The Louisiana workers comp laws
The Louisiana Workforce Commission, and more specifically the Officer of Workers’ Compensation Administration (OWCA), is responsible for overseeing the workers comp system in the state. The Louisiana Workers’ Compensation Corporation (LWCC) also offers its own government-funded plan.
- What do I need to know about workers’ compensation insurance in Louisiana?
- Do I need workers’ compensation insurance if I am self-employed in Louisiana?
- Do I need workers’ comp insurance if I hire contractors in Louisiana?
- How do I buy workers’ comp insurance in Louisiana?
What do I need to know about workers’ compensation insurance in Louisiana?
Regardless of the number of employees you have working for you, it is required that you obtain workers’ compensation coverage. This is to ensure that you and your employees are covered and protected in “worst-case” scenarios. Below you will find some FAQs regarding coverage.
Do I need workers’ compensation insurance if I am self-employed in Louisiana?
Nope! If your business is a sole proprietorship or a partnership with no employees, you are not required to get workers’ compensation insurance. However, depending on the type of work you do (i.e. if it’s high-risk work), you may want to consider getting it anyway.
Do I need workers’ comp insurance if I hire contractors in Louisiana?
Short answer: it depends. Depending on the type of work, how often they work for you, and even how much supervision the contractor receives could affect this. Thankfully, the state has put together THIS quiz to determine if you will need to provide insurance.
How do I buy workers’ comp insurance in Louisiana?
There are three different ways to purchase workers’ comp insurance in the state of Louisiana:
1. Buying workers comp insurance from private insurers in Louisiana:
This is the most common type of workers’ comp insurance, as can be seen with its 55% market share. Above, we listed several different private insurers for workers’ comp insurance
2. Self Insurance
In order to self-insure, you must meet several requirements, as listed HERE
3. Buying workers comp insurance from state or federal funds
A state/ federal fund utilizes government funding to provide coverage to employers, you can learn more about government funds HERE
What does workers comp insurance cover in Louisiana?
Workers’ compensation insurance provides coverage for workers when they become sick or are injured while on the job site.
The benefits include:
- Lost wages
- Generally ⅔’s of their average wage
- Medical assistance
- Surgery, medication, and more
- Disability benefits
- Both partial and permanent
- Death benefits
- Burial costs, benefits to dependents, etc.
- Rehabilitation benefits
- Job training, tuition, etc.
What benefits the workers comp insurance provides to the employers?
Worker’s compensation is highly beneficial to business owners as well. While it protects the employees, it also reduces the employer’s liability for work-place related injuries and/ or illnesses, as long as it cannot be traced back to willful negligence to the employer. This will reduce the possibility of paying high-priced medical bills or salaries for those unable to work when disabled or sick.
How much does workers’ comp insurance cost in Louisiana?
Workers’ compensation insurance costs, on average, $1.50 per $100 in payroll, which is on the higher end for the United States. It depends heavily upon multiple factors including payroll, industry, location, claims history, and more.
Different insurance companies will give you different quotes. Be sure to shop around with a few companies or with a digital broker like CoverWallet to compare several quotes to find the cheapest one for your company.
How to find cheap workers comp insurance in Louisiana?
The most important thing you can do to save money is make sure you’re using the right class code for every employee. Some class codes have much higher rates than others. Also remember to update the codes if an employee is promoted or changed jobs within your company.
You can also save money by providing a safe workspace for employees, so they won’t get injured. Make sure you establish the workplace safety standards and best practices for your company. Some insurance companies will provide a risk management assessment, which is worth taking advantage of.
You could also consider pay-as-you-go workers compensation insurance, which might save you money. It’s based on your actual payroll, rather than estimated payroll. So, if three people quit one month, your rate will be lower for that month.
Are there penalties for not having workers’ comp insurance in Louisiana?
Yes, there are penalties. Employers that chose not to provide workers’ compensation can be fined $250/ employee as a first-time violation, then $500/ employee for each additional infraction, up to $10,000.
If the employer continues not to provide workers’ compensation insurance, they may be charged criminally or be forced to close down until workers’ comp insurance is purchased.
How do I file a workers’ compensation claim in Louisiana?
In order to file a claim, we recommend you either contact your insurance provider immediately or visit their website and view their claims page- you should be able to find the forms you need here.
Be sure to record the following information:
- Date and time of the incident
- Type of injury/ illness
- Body parts affected
- Days your employee missed work
- Medical provider of your employee
If your claim is denied, you should be able to appeal- just be sure to do in a timely and respectful manner. If you have any further questions, please leave them in a comment below and we will do our best to answer you!
How is workers compensation insurance different from general liability insurance?
Workers compensation covers your employees: general liability covers third parties, like customers and guests. If a client is injured on your jobsite, general liability will pay their claim. If one of your employees is injured on a jobsite, workers compensation will pay for their medical bills and lost wages.