If your business hires employees, you should have worker’s compensation insurance. While we know you work hard to create a healthy workplace environment for your employees, worker’s compensation claims can apply to physical and mental health issues. Therefore, ensuring that your employees and business are adequately covered is crucial.
What is Worker’s Compensation Insurance?
Worker’s Compensation Insurance covers your business from a financial loss if an employee is injured while working. By law, companies must take “reasonable care” in making their workplace safe for their employees, but accidents can still happen. Workers’ Compensation Insurance provides coverage for medical costs and a portion of lost wages for employees if they are injured on the job. If an accident does happen and an employee is injured on the job, it’s vital to ensure that potential medical or legal costs do not financially impact your business.
How Does Worker’s Compensation Insurance Work?
If an accident happens and an employee is injured, Worker’s Compensation Insurance ensures that you, and your employee, are protected no matter who is at fault. Workers can file claims for any physical injuries or mental illness resulting from performing duties outlined within their employment agreement. For example, a common worker’s comp claim is for physical injuries sustained on the job.
Each state handles worker’s compensation claims differently, so it’s important to check with your insurance agent to ensure you’re aware of all requirements and regulations established in your state.
Worker’s Compensation Insurance will also cover you or your employees in a natural disaster, outside attack, workplace violence, occupational diseases, and even certain illnesses or death.
What Are Workers’ Compensation Benefits?
Workers’ compensation is a form of insurance that benefits employees injured while on the job. These benefits can cover medical expenses, reimbursement for medical bills, and disability compensation. In the event of a fatal injury, death benefits may be provided to dependents. The purpose of these benefits is to cover various costs incurred by the injured worker. Typically, injured employees are entitled to workers’ compensation benefits, regardless of fault. These benefits also prevent the employee from suing their employer for injuries that are covered under the policy.
Do I Need Worker’s Compensation Insurance?
Unless you live in Texas or operate a business with three employees or less, you most likely need Worker’s Compensation Insurance. As we mentioned, each state has laws relating to worker’s compensation, but 49 states require businesses with three or more employees to carry the coverage in some form. Therefore, depending on your state, you may be required to carry Worker’s Compensation with three, four, or five employees. Sole proprietors are not required to carry Worker’s Compensation Insurance.
Contact us today if you are unsure if your business would be required to carry worker’s compensation.
How Much Does Worker’s Compensation Insurance Cost?
As with all other insurance policies, a few factors affect your Worker’s Compensation Insurance cost. One of those factors is the state in which you operate. Some other factors include the number of employees, industry risk factors, and total payroll.
Here are a few things you can do to reduce the cost of your Worker’s Compensation Insurance:
- Ask for savings opportunities by bundling with Business Liability and Commercial Property
- Mitigate Risk Where Possible
- Minimize Worker’s Comp Claims
It’s important to keep your employees trained on proper safety procedures and care practices, so they maintain a safety-conscious mentality.
What Accidents Are Not Covered by Workers’ Comp?
Workers’ compensation insurance is intended to cover injuries that occur on the job. While it provides broad coverage for various types of injuries and situations, there are certain limitations. Compensation may be denied if:
- The injury occurred due to the worker being intoxicated or using illegal substances.
- The injury happened while the worker was engaged in a serious criminal act.
- The injury occurred when the worker was not at work.
- The injury was self-inflicted, such as if the worker instigated a fight.
States may require drug and alcohol testing for the injured employee and can deny benefits if the tests reveal the employee was under the influence at the time of the injury. These circumstances are often uncovered during the investigation, which takes place after a workers’ compensation claim is filed.
What Should An Employee Do If Hurt On The Job?
If an employee is injured while on the job, they must report the injury to their supervisor immediately. The report should include the date, time, and details surrounding the incident. While each state has specific guidelines regarding when an injury should be reported, it’s always recommended to notify as soon as it occurs.
Job-related illnesses that develop or worsen over time should be reported once the employee has received a diagnosis or as soon as they determine the illness or injury is work-related.
How To Get Worker’s Compensation Insurance
If you are a business with three or more employees and are interested in Worker’s Compensation Insurance, then make sure you contact us today. Based on your business services, the number of employees, the payroll budget, and the state, we can provide you with an insurance quote for worker’s comp.
Make sure you keep your employees and your business protected – get worker’s compensation insurance!
