Running a business comes with many responsibilities, and one of the most important is protecting your employees. That’s where workers compensation insurance comes in.
In Pennsylvania, workers comp insurance is not just a safety net—it’s a legal requirement for most businesses. Still, many employers in Lancaster, Reading, Harrisburg, and throughout the state have questions about how workers compensation works, who needs it, and what it actually covers.
To help, we’ve answered some of the most common questions Pennsylvania business owners ask about workers compensation insurance.
What Is Workers Compensation Insurance?
Workers compensation insurance provides financial protection when an employee is injured or becomes ill due to their job. It helps cover:
- Medical expenses and hospital bills
- Rehabilitation and ongoing treatment
- Lost wages while the employee recovers
- Disability benefits (temporary or permanent)
- Death benefits for dependents in the event of a workplace fatality
This system protects employees by ensuring they receive benefits without the need for lengthy lawsuits. At the same time, it protects employers by limiting liability and helping businesses stay compliant with Pennsylvania law.
Who Needs Workers Compensation Insurance in Pennsylvania?
In Pennsylvania, nearly every business that employs at least one worker is required to carry workers compensation insurance. This includes:
- Full-time employees
- Part-time employees
- Seasonal workers
There are limited exceptions for certain types of workers, such as federal employees, some agricultural workers, and independent contractors. But for the vast majority of Pennsylvania businesses, workers comp is mandatory.
Even if you think your business is “low risk,” you are still responsible for carrying coverage. Workplace accidents can happen in any industry—from construction to office work.
How Much Does Workers Compensation Insurance Cost in PA?
The cost of workers comp insurance varies depending on several factors:
- Industry risk level (e.g., construction vs. office jobs)
- Number of employees and payroll size
- Your claims history (previous workplace accidents)
- Coverage limits and policy details
For example, a construction company in Lancaster may pay higher rates than an accounting firm in Reading due to the increased risks involved.
At Blue Marsh Insurance, we shop multiple carriers to find the best workers compensation insurance for your business at the most competitive price.
What Does Workers Compensation Insurance Cover?
Workers compensation insurance covers injuries and illnesses that are directly related to work. This includes:
- On-site accidents (e.g., slips, falls, equipment injuries)
- Injuries that happen off-site while performing job duties
- Auto accidents while traveling for work
- Occupational illnesses caused by workplace exposure
Workers comp also pays for lost wages during recovery and provides long-term disability support if an employee cannot return to work in the same capacity.
What Is Not Covered by Workers Compensation in PA?
While workers comp is broad, it doesn’t cover everything. In Pennsylvania, exclusions typically include:
- Self-inflicted injuries
- Injuries sustained while under the influence of drugs or alcohol
- Incidents that occur outside of work and unrelated to job duties
- Independent contractors (unless specifically covered)
- Volunteers and certain exempt employees
Quick Comparison: Covered vs. Not Covered
| Covered by Workers Comp | Not Covered by Workers Comp |
|---|---|
| Job-related medical treatment | Injuries caused intentionally |
| Lost wages during recovery | Accidents under drug/alcohol use |
| Rehabilitation services | Non-work-related injuries |
| Disability benefits | Independent contractors (unless added) |
| Death benefits for dependents | Volunteers or exempt workers |
Does Workers Compensation Insurance Cover Remote or At-Home Employees?
Yes. With more Pennsylvania businesses embracing hybrid and remote work, it’s important to know that employees are still covered under workers comp—as long as the injury or illness is directly related to their job duties.
What Happens If I Don’t Have Workers Compensation Insurance in Pennsylvania?
Failing to carry workers compensation coverage when required can lead to serious consequences, including:
- Heavy state fines
- Lawsuits from injured employees
- Criminal charges in severe cases
- Business closure orders
It’s simply not worth the risk. Workers comp insurance protects both your business and your employees—and ensures you’re compliant with Pennsylvania law.
How Do I Get a Workers Compensation Insurance Quote in PA?
Getting a workers compensation policy doesn’t have to be overwhelming. At Blue Marsh Insurance, we specialize in helping businesses in Lancaster, Reading, Harrisburg, and surrounding areas find the right coverage.
We know that workers compensation insurance can feel confusing, but the good news is—we’re experts at it. Whether you’re looking for a brand-new policy or want us to review an existing one, we can help.
Your business is unique, and so are the risks your employees face. We’ll make sure you’re covered the right way—and at the right price.
Final Thoughts
Workers compensation insurance is one of the most important protections your business can carry. It safeguards your employees, shields your business from lawsuits, and ensures you remain compliant with Pennsylvania law.
At Blue Marsh Insurance, we’ve helped countless businesses across Lancaster, Reading, Harrisburg, and beyond secure the right workers compensation coverage.
👉 Ready to protect your business and your employees? Contact us today for a personalized workers compensation insurance quote in Pennsylvania.
Time to Review Your Commercial Insurance?
If you’re ready to find out whether your business is fully protected—and if you’re paying the best possible price—why not schedule a quick review with an experienced insurance advisor? At Blue Marsh, we can walk you through your current policy, identify potential gaps, and discuss ways to optimize your coverage for both cost and protection.
Because the truth is, you don’t have to settle for uncertainty when it comes to your business’s insurance. Whether it’s understanding how emerging risks like cyber threats could impact your business, navigating complicated coverage options, or simply ensuring you’re not overpaying, we’re here to help.
Take control of your commercial insurance—and make sure your business is covered for whatever comes next.
Need a second opinion? Reach out to us today. We’ve been helping businesses get the right insurance coverage since 2008, and we’re here to make sure you get the best deal possible.
Blue Marsh – Your trusted partner for commercial insurance.
Let’s Connect
If you’re ready to take your business to the next level and safeguard your achievements, please reach out. Together, we can ensure that you not only maintain your success but also reach for greatness.
We’d love to talk to you about the specific risks your business faces and how we can help you protect it. We have a full team of business insurance experts ready to help you. Contact us here and let’s get started!
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!