Workers Compensation Definition, Programs, and Necessities
What Is Workers Compensation Insurance?
As a business owner, you can protect your firm by acquiring Workers’ Compensation Insurance. When your employees receive injuries or illnesses from their jobs, you won’t have to worry about paying for their recovery costs. If you have Workers’ Compensation Insurance, it will cover your employees’ medical bills, rehabilitation fees, and wage benefits. Regardless of who is at fault, if an employee dies while at work, Workers’ Compensation Insurance will benefit the employee’s dependents. Additionally, Workers’ Comp Insurance is mandatory in most states. However, medical and wage benefits vary by each state.
Employers have the responsibility to take care of their employees as well as guarantee that the workplace is safe. However, in any type of business, whether big or small, accidents still occur. Thus, you have to make sure that your business will not experience financial losses when accidents happen.
How Does Workers Compensation Insurance Claims Work?
Parties who have injuries should visit professional healthcare immediately so a doctor can process medical reports to assist with any claims. Workers can then start the claim filing process, including any mandatory state forms or paperwork. As soon as the claims are approved, the injured party will have their compensation payments and can go back to work whenever they’re ready. Take note that the state law decides on the number of benefits to which a worker is entitled. If you need more information about filing an insurance claim, Contact Us, and our agents will help right away.
Workers Compensation Insurance Coverage
Workers’ Compensation Insurance protects both the employer and the employee. For instance, let’s say your employee gets into an accident while driving to deliver a product to your client. In this case, you don’t have to use your business assets for your employee’s medical bills and lost wages because your Workers Comp Insurance will pay it for you. Below are the following coverages that Workers Comp offers for employees:
- Medical Expenses
- Recovery Costs
- Wages Lost
- Funeral Expenses
Injuries from the workplace due to accidents are about 30% sprains and strains. Such injuries often happen during the lifting of heavy objects. The second-highest percentage of accidents are falls, slips, and trips, which is 27%. In most instances, sprains and strains take about 12 days to recover before the injured can return to work.
Who Needs Workers Compensation Insurance?
Any company that has at least one employee must acquire Workers’ Comp Insurance. Workers Compensation is applicable in any type of working arrangement, whether it is implied, oral, written, or unlawful employment. On the contrary, some employers are exempt from having Workers Comp. Here is a list of people who are exempt from having Workers Comp Insurance:
- Independent Contractors
- Sole Proprietors
- Executive Officers
- LLC Members
A company that does not comply with Workers Compensation Insurance will need to pay at least $10,000 or face a state penalty of up to $100,000. Thus, if you need Workers Compensation coverage, you can buy it from private insurance companies. You can contact us, and we’ll help you choose the right Workers Comp coverages for your business.
Factors Affecting Workers Compensation Insurance Cost
While there isn’t a common rate, it’s important to know the factors that affect your insurance policies’ premium rate. Here is a list of factors that influences your insurance premium:
Claims History
State laws require claim history to be included in determining the rates of insurance. This is because it reflects the safety of your workplace compared to the other similar type of business.
Location
Insurance providers have been checking out the exposures of policyholders. Moreover, each state mandates its own Workers Comp laws. Thus, your insurance rate will vary on the requirements of the state where you operate your business.
Size of Payroll
Your annual payroll will determine the cost of your annual Workers Comp Insurance cost. Thus, it is important to report your payroll accurately since it directly impacts your company’s cash flow.
Type of Work
Insurance premiums vary depending on the employees’ job. For example, contractors’ premium rate might be higher than IT consultants’ because their jobs are more physically dangerous.
Overall, no matter what kind of company you run, Workers Comp can be the right associate in saving your business from financial damages when your employees are injured or become ill on the job. It covers medical expenses, missed wages, work-related lawsuits, and death benefits. Imagine what would happen to your firm if you don’t have Workers Comp Insurance. Your state laws will most likely require you to pay for your workers’ recovery bills and lost wages.
Moreover, you will need to pay state penalties if you are not insured. Workers Comp can be a great helper for you as an employer when the unfortunate happens to your employees. Protect your business now by purchasing Workers Comp Insurance. If you’re ready to have your Workers Compensation Insurance, you can Contact Us, and our insurance agents will help you get the most-fitting policies for your business needs.
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