Workers’ compensation insurance policy pays essential benefits to employees who are injured or get sick while performing their work-related duties. It covers their medical treatment and ongoing care and compensates them for a portion of their lost wages. The policy may also pay death benefits to the employee’s family if the injury or illness leads to their eventual death.
What Does It Cover?
The following are the benefits provided by workers’ comp insurance:
- Medical Coverage- includes expenses incurred in hospital visits, medications, emergency surgeries, etc.
- Lost Wages- a portion of the wages is recompensed while the employee is recovering and cannot work
- Disability Benefits- are provided in case the injury causes permanent or temporary disability
- Ongoing Care- includes expenses incurred on physical therapy
- Death Benefits- are extended to the family members of the deceased employee to cover funeral/burial expenses
Where Can You Buy Workers’ Compensation Insurance?
This policy can either be bought from private insurance companies or through state-run agencies. Private insurers often set their own prices and may provide better quotes than state-funded agencies.
How Much Does It Cost?
The premiums to be paid will vary depending on the type of industry that you operate in. For example, high-risk industries such as construction involve higher chances of accidents and injuries. As such, businesses operating in such sectors are expected to pay higher workers’ comp premiums.
Similarly, past recorded workers’ comp claims can also affect your premiums. The higher the frequency of claims filed, the higher the premium because of the greater risk perceived.
How to File a Claim?
As soon as the employee reports the injury/illness, the employer needs to notify the insurance company of the same.
Also, in case of severe workers’ comp injuries, the employer needs to report such injuries to the Occupational Safety and Health Administration (OSHA). The employer has the right to dispute the claim if they believe that the injury/illness wasn’t caused by work, and the employee will have to prove their case before the workers’ compensation board.
Risk Control to Avert Workers’ Comp Claims
Proactively managing your business risks can help avert costly employee-related lawsuits and claims. You can take certain steps as a business owner to prevent accidents and injuries at the workplace. These include:
- Setting up safety protocols and procedures to be followed by all employees
- Training your employees regularly on workplace safety
- Conducting periodic safety inspections to detect and correct any potential hazards
- Keeping a first aid kid handy at all times
What If You Have No Employees?
As a business owner with no employees, you are not required to carry any workers’ comp policy. Instead, you can invest in your own health insurance plan to cover yourself in the event of illness/ injury. Nevertheless, if you have even one employee working for your business, you will have to carry a workers’ comp plan for that employee unless you live in an exempt state.
Prioritize Your Employees’ Safety
A safe worker is a happy worker. Even so, accidents are inevitable, and despite all the precautionary measures that you take, a single unfortunate incident can cause life-long disabilities. When your employees know that they are adequately covered against uncertainties, they can work with greater peace of mind. Meanwhile, you can also rest assured knowing that no sudden employee-related claim will threaten your business or cause you to pay hefty sums out of pocket.
Thus a workers’ comp insurance policy protects you as well as your employees, ensuring a conducive work environment for all.
At Sausman Insurance Agency, we value the amount of effort and investment you put in building up your business and are committed to protecting it from future uncertainties. Contact us today to learn how we can help you get the right workers’ comp insurance coverage for your business, tailored to your unique needs.