Workers’ compensation insurance
Required by most states, workers' compensation insurance is important protection in the event of a workplace accident.
Protection for workplace injury
Workplace accidents happen. Automatic Data Processing Insurance Agency, Inc. (ADPIA®) can help you find workers' compensation coverage that meets your state requirements while protecting your company and employees if there is an injury at work.
Why us?
With ADPIA as your workers’ compensation broker and ADP’s payroll and Pay-by-Pay® Premium Payment Program, we can help you take the “work” out of managing your workers’ compensation by:
- Improving Cash Flow - eliminate your up-front deposit1 and spread out insurance premium payments across the policy life-cycle.
- Increasing Accuracy - use your real-time ADP payroll data and carrier rates for more accurate premium payments
- Streamlining Audits - carriers may accept the Pay-by-Pay report during the year-end audit and approve it with little involvement from you2
- Digital Tools - Ability to manage your policy via RUN Powered by ADP® payroll platform and create certificates of insurance 24/7
- Outstanding Service – More than 900 licensed agents in your corner, plus digital tools to help you manage your policy
Learn how ADPIA helped Airtech Automotive fuel growth with a better workers' compensation solution.
Integrate workers' compensation premium payment and payroll for even more benefits
If you use ADP for payroll, you'll find even more convenience when you integrate your workers' compensation premium payments.
Easier premium payments
Streamline your workers' compensation premium payments using ADP's Pay-by-Pay® premium payment program.
Convenient certificate access
Generate and manage your certificates of insurance 24/7 through your ADP payroll platform.3
Common questions about Workers’ Compensation
- When do I need to buy workers' compensation insurance?
-
In most states, workers' compensation insurance is required for companies with one or more employees. States typically enforce penalties for employers who do not have workers' compensation insurance. Contact us for help determining what your states requirements are.
- How much does workers' compensation insurance cost?
-
Workers' compensation insurance pricing is based on: carrier defined rates, your payroll, the number and job classifications of the employees, classification of your business and past loss experience. As the employer, you are responsible to pay for the cost of workers' compensation premiums.
- What does workers' compensation insurance do?
-
Workers' compensation insurance generally pays for the rehabilitation, recovery or medical bills of employees' work-related injuries, as well as lost time due to a work-related injury. Workers' compensation insurance is not a substitute for health or medical insurance — employees are only covered for on-the-job injuries.
- My partner and I subcontract work to other contractors, but have no employees. Do we need workers' compensation insurance for ourselves?
-
The answer to this question is complicated and depends on several factors. Contact us and a licensed APDIA agent will be able to help you.
- How am I billed for workers' compensation insurance if I'm not using ADP's Pay-by-Pay?
-
Direct billing is an option for clients that prefer to receive a bill for their workers' compensation premiums that comes directly from their insurance carrier.
- What is an additional insured?
-
Additional insureds are third-party entities that were not originally named on your workers' compensation policy, and cannot be added. This is because your workers' compensation policy is intended to cover your employees only. However, additional insured endorsements can be included in general liability policies.
- What changes do I need to notify ADPIA about?
-
Please notify ADPIA about any modifications made to your business operations, including (but not limited to) changes to:
- Your authorized contacts
- Operating locations
- FEIN
- Entity and ownership status
- Employee status
- Why am I having an audit and how can I prepare?
-
All workers' compensation policies are subject to audit by the carrier as per the terms of your policy. You may be required to participate in an end-of-policy term audit to confirm the accuracy of your premiums and coverage. If so, your carrier will contact you within 30-60 days of your policy expiration to arrange the audit. Rest assured that ADPIA is here to help you through the audit process. Prior to contacting us for assistance, please have the following documents handy:
- Quarterly reports or 941s
- Payroll journal/master payroll file
- Federal tax records
- State unemployment reports
- Overtime pay by employee
- Payments to subcontractors (if a subcontractor provides materials as part of a job, be sure the invoice specifies payment for work and materials separately)
- Certificates of insurance for each 1099 and/or sub-contractor who maintains their own workers' compensation policy
- CA clients with dual wage classifications: You may be required to provide timecards
- Who handles my audit?
-
The audit must be completed by an authorized representative of your business. ADPIA can help by providing copies of reports and answering questions related to the audit process, but ADPIA does not perform the audit.
Why ADPIA? Here’s what our clients have to say…
9 out of 10
clients say they now spend less time managing their workers' compensation policy and premium using ADP's Pay-by-Pay solution.
4 out of 5
clients spend less time on their year-end audit now that they are using ADP’s Pay-by-Pay solution.
4 out of 5
clients agree their annual audit has been easier to manage since using ADP’s Pay-by-Pay solution.
96%
of clients prefer having their workers’ comp premium payments spread across their payroll cycle (vs. having an upfront deposit).
9 out of 10
clients agree Pay-by-Pay has helped improve cash flow for their business by spreading premium payments across their payroll cycle.
Internal survey of 697 ADPIA clients in 2022 that use ADP’s Pay-by-Pay® Premium Payment Program to calculate and process their workers’ compensation premiums.
1 While premium deposits may be eliminated with most carriers, mandatory state assessment fees may be required in some states.
2 While Pay-by-Pay may reduce the administrative burden of the annual audit, the carrier reserves the right to perform a more in-depth audit, as outlined in your policy documents.
3 Only available to ADP Payroll clients using RUN powered by ADP® with ADP’s Pay-by-Pay® Premium Payment Program for Workers’ Compensation. Not available to Teledata clients. Excludes specific waivers of subrogation and other special requirements that may be needed in a certificate of insurance. A blanket waiver of subrogation will be available to apply if already applicable on your policy. You must contact ADPIA’s licensed service agent, if your request for a certificate of insurance requires a specific waiver of subrogation. Additional fees and premium may apply.