How does workers' comp work in Wisconsin?

It is important for all business owners to know the rules and regulations associated with workers compensation in the state of Wisconsin. Businesses with 3 or more full or part-time employees must carry workers comp coverage. Most business owners know they are required to carry this insurance, but many do not have a full understanding of what it is. At Workers Compensation we want to be your go to resource for all of your coverage needs.

Learn more about Wisconsin workers' compensation rules below. If you have any questions about workers comp and how it can help your business, call one of our experts at 888-611-7467. We can help find the right coverage for your business needs.

At Workers Compensation, we shop workers comp insurance so you don't have to.

Workers' Comp Rules & Information for Wisconsin

State Insurance Directives Regarding Covid-19

Insurers are “encouraged to offer flexibility” to insureds, including: 1) offer non-cancellation periods; 2) defer premium payments; 3) premium holidays; and 4) acceleration or waiver of underwriting requirements.  The WI OCI will not view accommodations made to insureds as a result of CV as violationg insurance laws, e.g., unfair inducement.  Accommodations should not be applied in an unfairly discriminatory manner. Extraordinary dividends filed and approved prior to the emergency may be rejected by OC and returned for further analysis in light of the pandemic. If insurer does not believe it will be able to meet a filing deadline required by WI law or OCI order, contact OCI to discuss alternative arrangements.

Discretionary order in effect from 03/20/2020 until the conclusion of the COVIC-19 public health emergency.

State Orders Regarding Insurance Claims Related to Coronavirus

A first responder (i.e., employee or volunteer for employer that provides firefighting, law enforcement, or medical treatment of COVID-19 and who has regular direct contact/proximity to the public) injury caused by COVID-19 and where the first responder has been exposed to COVID-19 in the course of employment is presumed to be caused by their employment.  An injury claimed under this circumstance must have a physician’s diagnosis or a positive COVID-19 test.  This injury may be rebutted by specific evidence that the injury was caused by exposure outside of the first responder’s work.  This provision applies until 30 days after the order expires. A health care professional, health care provider, or employee, agent, or contractor of a health care professional or health care provider is immune from civil liability for the death of or injury to any individual or any damages caused by actions or omissions during the COVID-19 crisis and for 60 days following the lifting of the state of emergency. A person engaged in the manufacturing, distribution, or sale of emergency medical supplies, who donates or sells such supplies to a charitable organization or governmental unit responding to the COVID-19 crisis is immune from civil liability for the death of or injury to an individual caused by the donated supplies.

Mandatory state law effective 04/15/2020 until further notice.

Wisconsin Department of Workforce Development- Workers' Compensation Division

P.O. Box 7901
Madison, WI 53707-7946

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

Wisconsin Compensation Rating Bureau

The Wisconsin Compensation Rating Bureau(WCRB) acts as administrator and trustee of the assigned risk plan. The WCRB mission is to is to administer and enhance Wisconsin's system of worker's compensation classifications, rates, rating plans, and forms.

How does workers comp help my business?

Your business benefits by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee.

Wisconsin's Open Work Comp Market

Workers comp coverage in the state of WIsconsin is administered on an open market. There are about 300 insurance companies licensed to write workers' compensation insurance in Wisconsin. This large number of carriers keeps rates low through competition. It also makes it extremely important to shop your policy with many carriers. Not all carriers offer the same rates, discount, credits or dividends. Premiums can differ widely amongst carriers. We work with more than 15 carriers and can shop your policy to get the best coverage at low rates.

How does workers comp help my employee?

Employees benefit from workers comp coverage by having lost wages covered while they are hurt or sick and not able to work. It also pays for medical costs they might incur as a result of the sickness or injury.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
WI Owner/Officer Treatment

WI Inclusions/Exclusions

Sole proprietors, Partners and LLC Members are excluded from coverage in Wisconsin, but may elect to be included.

Corporate Officers are included in coverage but may elect to be exempt under certain circumstances. If a closely held company has no more than 2 corporate officers and has not other employees than a workers' compensation policy is not required. A closely held corporation is one that has less than 10 stockholders.

WI Payroll Requirements for Owners

If a sole proprietor or partner are included in a workers' compensation policy then they must use a payroll of $46,384.00. If a Corporate Officer or a LLC Member is included in coverage than payroll must be a minimum of $268.00 per week and a maximum of $1338.00 per week.

Let Workers Compensation help your business navigate workers comp insurance in Wisconsin.

What Does Workers' Compensation Insurance Cover?

Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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