When things go wrong, workers comp can protect your company from considerable losses. Businesses need a range of insurance for protection. However, workers compensation is one of the most important types of insurance you can buy if you have employees. In some states, the law mandates that you provide this essential coverage.
If you own a business, workers compensation insurance is vital for protecting your company from unforeseen expenses. It’s also important for safeguarding the welfare of your employees.
To learn everything that you need to know about employee compensation, keep reading.
Understanding Employee Compensation
As an employer, you look out for the safety of your staff members. Despite your best efforts, however, accidents can occur. When injuries occur, they can result in significant medical bills.
If one of your workers becomes injured, workers compensation insurance ensures that they have the funds to pay for job-related injuries. The benefit will cover employees until they return to the job.
Workmans compensation provides for employee medical expenses regardless of who’s at fault. Whether a court finds you, a customer or the employee liable for the injury, workers compensation will cover the claim. In exchange for this benefit, employees have limited rights regarding suing employers for damages.
Usually, the state regulates workers compensation. From state to state, the laws regarding workmans comp vary.
As an example, different states have varying regulations regarding how to evaluate employees for workers comp claims. They also have different rules about how employees must receive medical care while receiving workers compensation. More importantly, however, different states also have varying regulations about how much benefits employees can receive.
Why Workers Comp Is a Must
It’s important to know whether workmans compensation coverage is mandatory in your state. If you fail to provide coverage, you can leave your company exposed to paying for employee injuries out of pocket. You may also face penalties from your state.
It’s important to know who you must cover with workers compensation. The law may not require you to cover all workers, depending on your state.
An expert insurance broker can explain in detail the regulations for your state. In general, however, your responsibility for coverage varies depending on how many people you employ. It may also differ based on your field of work.
Additionally, some states do not require you to cover certain types of workers. For example, you may not need to cover workers if you operate a farm.
Some states also allow a workers comp coverage exemption for domestic employees. Likewise, you may find that some states don’t require you to cover seasonal or casual workers.
Usually, you won’t need workers compensation insurance if you’re a sole proprietor. However, a workers compensation policy can help you cover expenses if you’re a sole proprietor that gets injured on the job.
In other states, the workers comp rules don’t require you to cover family members who work for your business. You can find out more about workers compensation requirements for your state by visiting your state Department of Labor website.
Choosing an Insurer
Typically, you’d purchase workers compensation for employers separate from your business owner’s policy. Again, the rules vary from state to state as to whether you’d buy private or state insurance for workers compensation.
In some states, you might choose between both sources. Usually, state workers compensation is a last resort policy for business owners.
If you can purchase private insurance in your state, it’s better to choose a top-rated workers compensation provider. There are benefits to working with a private firm. For instance, a knowledgeable underwriter can explain how you can use workers comp effectively.
As you search for an insurer, look for a company that has experience handling claims. It’s also helpful to look for a company with expertise in covering businesses in your field or industry. By researching various providers, you can find the best value and rate.
Typically, a company will establish your premium based on your industry classification code. They will also make this assessment based on your payroll.
If you work in a high-risk industry, your premium will most likely cost more. Your location can also affect your insurance premium for workers compensation. Likewise, a history of frequent claims and injuries tied to your company can result in a higher premium.
Paying for Workers Comp Coverage
There are a few other factors that will affect your cost for workers comp insurance. For instance, your plan may call for you to pay a deductible.
If you’re concerned about the cost of workmans comp insurance, you’re not alone. However, there are ways that you can make paying for the benefit more palatable.
For instance, some companies allow you to make monthly payments. Often, an insurer will allow you to pay a monthly rate based on how many individuals you employ each month. This arrangement is a great way to avoid a large upfront payment or a lump sum payment at the end of the year.
Let Us Help You Secure Your Future
National Workman’s Comp Solutions can provide you with access to superior employee compensation plans. We can help you to make an informed decision about the best coverage for protecting your business. Our experts will help you to ensure that you choose the right coverage for long-term security.
For more than a decade and a half, National Workman’s Comp Solutions has helped businesses across the United States with integrity and professionalism. It’s our mission to help you find the right insurance solutions for your business.
Call a National Workman’s Comp Solutions insurance expert today at (855) 852-0128 or connect with us online for a fast, free quote.