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About Workers' Compensation

What is workers' compensation?
It's insurance carried by employers to provide benefits for employees injured on the job, regardless of fault. It includes payment of medical services and lost wages, subject to limits set by law. Workers' comp laws are determined by states, so they do vary. In most states, workers' compensation is the exclusive remedy for employers to cover work-related injuries.


Do I need it?
Most states require employers to carry workers' compensation insurance. There are exemptions. Contact your state's workers' comp board for more information.

How does it work?
When an employee is injured, the employer must contact MEMIC to begin the process of making a claim against the policy. Once an injury is reported, we provide appropriate access to medical providers and pay appropriate wage-replacement benefits.

How much does it cost? 
Costs are based on the kind of work an employee does and the wages earned for it. Some kinds of work have higher risk than others and are more costly to insure.

Rates for certain job types are filed with state agencies. The cost is calculated by multiplying that rate by $100 of payroll per employee. For example, if a police officer's classification is $4.00 per $100 and the officer is paid $400 per week, the workers' compensation insurance premium for that employee costs $4.00 per week. 

Rates also can fluctuate based on upon your experience modification. In other words, your history of injuries or claims. Go to For Employers: Calculating Premium for more information.

Do my subcontractors need it?
Typically most states require subcontractors to have adequate insurance coverage. Maine, for example, requires a formalized relationship that includes a contract, certificates of insurance for workers' comp and general liability, and a filed Pretermination of Independent Contractor Status form. Otherwise, in the event of an injury, the general contractor is liable for damages. You should contact your state workers' compensation agency to learn about subcontractor requirements.

How can I buy workers' compensation from MEMIC?

You can buy it directly through your insurance agent. If you do not have a relationship with an agent already, search our database for an insurance agent near you.
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arrow  Look up your state's workers' comp laws 
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arrow  Learn about injured worker benefits