Workers Compensation Insurance

Workers Compensation Insurance: The Basics

As a business owner, it’s your responsibility to be aware of the risks that your workplace poses to your employees. If you turn a blind eye to these risks, you’re much more likely to be dealing with injuries, accidents and claims. Does your business have worker’s compensation insurance?

Workers’ insurance is a policy issued to a business owner. It provides them with insurance coverage for the cost of work-related injuries which may befall their workers. As much as it is important to make the work environment safe, sometimes the inevitable happens.

How does workers’ compensation insurance protect your business?

This sort of insurance cover is mandated by the law of the land but unfortunately, most small business owners often think of it as an overhead expense that has little benefit. Contrary to this belief, the policy actually protects you the business owner and your employees. The insurance policy pays for all costs associated with employees’ injuries such as lost wages, medical bills, rehabilitation as well as permanent disability or death.

Medical treatment; it includes travel expenses, hospital stays, physical therapy etc. for all injuries including loss of limbs, breaks and diseases.

Rehabilitation; this come into play whenever an employee is coming back to work; some cannot return back to their original posts due to the accidents/ injuries. In this case, they’ll be posted in another field hence they won’t have to find another job.

Lost wages; the policy will sort out about two-thirds of the employee’s salary.

Liability insurance; it protects your company in the event a worker files a lawsuit against it.

Tips & Tricks to help you get started with worker’s compensation insurance

Rates; most states require business owners and companies to purchase these policies from insurance companies. As a rule of the thumb, shortlist at least 3 insurance companies and compare their rates. This will help you get the best quote.

States; insurance requirements vary from one state to another. In most cases, a company with less than 5 employees does not need the cover. Larger companies are required to obtain the cover.

Assigned risk plan; there are differences albeit subtle between an assigned risk policy and a workers’ compensation policy. Most companies and business owners find themselves in an assigned risk-plan which is more expensive. In order to get the best deal, consult an insurance agent.

Fraud; there are cases of fraud in which some employees fake injuries or prolong them simply to take advantage of you. Talk to your employees and warn them about fraudulent cases.

Are owners covered under a worker’s compensation policy?

The owner can be covered if they so wish. In other words, they have the choice of either including or excluding themselves from coverage. If included, they are entitled to the benefits in which case their payroll will include deductions for premiums.

Conclusion

Hopefully your business will not need to use this insurance, but having it will give you peace of mind while at the same keeping your business in check with legal requirements. Most work-place injuries can be prevented; keep an eye for uneven floors, exposed electric circuits etc.

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