June 3, 2019
Blog Every seven seconds of every workday sees an employee getting injured. These are staggering incidences that total to 4.5 million injuries annually. Of the many reported injuries, the most common happen to be pain and soreness, cuts and punctures and tears, sprains or strains. Is workers compensation insurance the answer? If so, how do you choose?
The cumulative losses due to on-the-job injuries can be damaging to your business. You, therefore, need to consider workers compensation insurance if the firm is to staunch the bleeding.
Here is a quick primer on why workers’ compensation is essential and the types of benefits it delivers.
Advantages of Workers Compensation Insurance
Whenever conversations around workers comp come up, it is almost always about employees. However, if you are an employer, there are benefits you also receive in having this insurance policy. The following are some of them.
1. It Promotes the Health and Well Being of Your Staff
The first and distinct advantage of a firm adopting a workman’s comp policy is that it ensures the safety of the staff. In case of an accident, team members across the organization know that they will be cared for.
A worker who knows that the company is taking measures to prevent accidents feels peaceful. On top of that, when they know that their health and well-being is covered should the inevitable happen it positively impacts their morale.
Employees who are assured of their workplace medical needs end up being more productive. As a result, the organization’s ultimate productivity increases.
2. It Reduces the Employer’s Burden of Support
When an accident occurs in the workplace, it can cause the affected worker to lose their income. In such a situation the employer will face direct or indirect pressure to help the injured worker support themselves.
Workers compensation insurance can help the company lighten their load in supporting such a worker.
The policy provides a disability payment to the injured worker. As a result, they can continue taking care of their needs as they continue seeking medical assistance.
The organization will thus benefit from not having to be the primary financial support. It will save on resources while gaining a positive reputation for supporting an injured employee in their hour of need.
3. It Promotes Compliance
In many states across the US, it is the legal obligation of an employer to provide workers compensation. Adopting a compensation policy will help your organization stay on the right side of the law.
The more an employer abides by the laws governing them, the lesser exposed they become to legal risk. One key benefit of this reduced legal risk is that the firm also gets to save on expenses related to them.
4. It Boosts the Employer’s Reputation
A notable benefit of adopting a workers’ compensation policy is that it grows the reputation of the firm in several ways.
Among the staff and other potential workers, the company becomes a preferred employer. When qualified people want to work in the organization, it improves its overall talent pool. Better skills across the broad will lead to higher productivity.
Business partners seek to work with reputable organizations. When a firm becomes known for its robust workers’ compensation scheme it might attract higher caliber partners.
Ultimately the positive growth in reputation has the potential to grow the bottom line.
Types of Workers’ Compensation Benefits
Every state in America governs its worker’s compensation laws. While the execution at the state level might vary, there are four common types of benefits found across different policies.
Medical Care
When an employee gets injured in the course of doing their work they are often taken to receive medical attention. Once this is done they file a claim for the policy to cover the associated costs which include:
- Fees charged for consulting a doctor
- Nursing care
- Diagnostic tests
- Medication
- Physical therapy
- Durable medical equipment
Particular prescribed financial limits do not determine the coverage under such circumstances. However, state laws can introduce limits to specific kinds of treatments.
There are certain treatments are therefore covered in particular states while others do not include them.
Many states provide for a managed care plan under the workers’ compensation scheme. A few states do not require it to be part of the policy.
The laws regarding these plans can vary from state to state but contain some standard features that include:
- Pharmacy Benefit Managers
- A provider network
- Medical care management
- Utilization management
Disability
An employee injured while working might need to take time off to recover. The disability benefit provides a portion of the wages lost during the time the employee is out of work and healing.
There are several types of disability classifications:
1. Temporary total: An employee is wholly disabled and can’t work for a short period.
2. Temporary partial: The worker is partially disabled for a short period.
3. Permanent partial: A worker suffers a permanent injury that leads to them not earning as much as they used to. An example is hearing loss.
4. Permanent Total: A worker suffers a permanent injury that causes them to not earn an income by doing the same kind of job as before.
The disability benefit is essential in assisting workers transition after injury.
Rehabilitation
When a worker is unable to return to regular duties due to an on-the-job injury, the policy provides some cover. Workers’ compensation will pay for any costs related to rehabilitating an employee injured while working.
If the injured worker can’t go back to their position, the rehabilitation benefit helps them adjust. The policy will also pay for any costs associated with retraining the worker for a new job.
Death
A workers’ compensation policy touches on the financial contribution an employee makes to their dependents.
When a worker dies due to a work-related injury, their benefits are paid to their dependents.
These could be their children, spouse, parents or sibling. Death benefits also provide for the funeral and burial expenses.
Protect Yourself
A workplace injury is a recurrent part of daily operations that calls for a practical solution.
Workers compensation insurance is a solution that offers benefits to both workers and employers. As such, this is a policy that every organization should consider.
Are you looking for the right worker’s compensation policy for your business? National Workman’s Comp Solutions has over 85 different carriers and PEO’s in our network and can present policy options for every industry. Talk to us today for a free quote.
