Workers’ Compensation Insurance
This coverage provides benefits to employees who suffer job-related injuries or illnesses. For automotive businesses, where physical labor, machinery, and customer interaction are part of daily operations, workers’ comp is an essential part of the management plan.
Protect your employees and your business with coverage that meets state requirements.
At AutoRisk, we provide tailored insurance solutions that allow business owners to operate with peace of mind, knowing their assets and liabilities are covered by experts who understand the unique demands of the automotive industry.
States We Provide Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
Why Automotive Businesses Need Workers’ Compensation
In most states, the standard workers compensation and employer’s liability policy published by the National Council on Compensation Insurance (NCCI) is the required policy form. NCCI collects data on workplace injuries and advises rates based on class code, or industry classification. An insurance policy that provides coverage for an employer’s two key exposures arising out of workplace injuries sustained by employees.
The automotive industry involves hands-on work and potential hazards, from lifting heavy parts and using power tools to working under vehicles or around moving equipment. Even with safety training and proper procedures, accidents can still happen.
Workers’ Compensation Insurance is vital because it:
Pays for medical care if an employee is injured on the job.
Covers lost wages while the employee recovers.
Provides disability and rehabilitation benefits when needed.
Reduces legal exposure by limiting the risk of employee lawsuits.
Keeps your business compliant with state insurance requirements.
Without this coverage, your business could be responsible for paying medical costs, legal fees, and wage losses directly. These expenses can quickly become overwhelming.
Don’t leave your coverage to chance, work closely with an expert who understands your operation.
What is Covered?
A comprehensive workers’ compensation policy typically includes:
Medical expenses – Doctor visits, surgery, hospital stays, medications, and physical therapy for job-related injuries or illnesses.
Lost wages – Partial income replacement when employees cannot work due to a covered injury.
Disability benefits – Payments for temporary or permanent disability resulting from a workplace accident.
Rehabilitation – Support for retraining or therapy that helps employees return to work safely.
Death benefits – Financial support for dependents if a fatal workplace injury occurs.
Common Claims in the Automotive Industry
Automotive businesses face a variety of injury risks, including:
Slips, trips, and falls on wet shop floors or outdoor lots.
Repetitive strain injuries from constant lifting or mechanical tasks.
Burns or cuts from tools, chemicals, or welding equipment.
Back or joint injuries from lifting heavy auto parts or tires.
Accidents involving vehicles during test drives or lot movement.
Workers’ Compensation helps protect your team — and your business — from the financial impact of these common events.
Worker’s Comp insurance comes in two parts:
Part A of the policy covers the employer’s statutory liabilities under workers’ compensation laws.
Part B of the policy covers liability arising out of employees’ work-related injuries that do not fall under the workers compensation statute.
How Workers’ Compensation Premiums Are Calculated
Premiums are based on several factors, including:
Type of automotive operation (dealership, service center, towing, etc.)
Number of employees and total payroll
Job classifications and associated risk levels
Claims history and safety record
State regulations and experience modification rate (EMR)
Implementing safety programs and maintaining a clean claims history can help reduce costs over time.
Benefits of Workers’ Compensation Insurance
Meets state-mandated insurance requirements
Protects employees and demonstrates a commitment to safety
Covers medical, wage, and rehabilitation expenses
Shields your business from lawsuits and legal costs
Encourages a safe, productive workplace environment
What’s Not Covered
Workers’ compensation policies do not cover:
Injuries that occur while the employee is off the job.
Self-inflicted injuries or injuries caused by intoxication.
Violations of company policy or intentional misconduct.
Independent contractors not classified as employees.
Your broker can help you define employee status and ensure the right individuals are included in coverage.
Benefits of Working With AutoRisk
Hundreds of Clients Nationwide | Fast and Responsive Advisors | Transparent Coverage with No Surprises
Custom Policy Design
We customize your coverage based on your business operations, risk exposure and geographic location with the goal of reducing your claims.
Industry Expertise
We specialize in automotive business risk management. Our team understands the automotive industry and delivers solutions to reduce claims and save money.
Competitive Pricing
We work with specialized underwriters and carriers to offer the most coverage for your dollar, helping you stay profitable while staying protected.
Claims Support That Works for You
In the unfortunate event of a loss, our subject matters experts will help you though the claims process, minimize downtime, and recover value efficiently.
Learn More About the Insurance Required to Protect your Business
Dealers Open Lot Insurance | Errors and Omissions | Garagekeepers | Garage Liability | Commercial Auto | Employee Liability | Property | Workers’ Compensation | Pollution Liability | Cyber Liability | Rental Insurance | On-Hook Towing | Cargo Towing | Vehicle Leasing | General Liability | Excess Liability
