Needed Protection in Most Companies
Workers’ compensation insurance guidelines vary from company to company, but the rule of thumb remains the same — make sure it covers as much as possible in terms of injuries and medical expenses. Given that employee retention is one of the major drivers of business growth, investing in the right coverage is definitely worthwhile. It will help you attract and retain quality employees who consider it a benefit.
What Does Your Insurance Policy Cover?
It’s one thing to have a workers’ compensation insurance policy. It’s another thing to know how to make the most of it and what to expect if you ever experience an accident in your workplace. Generally, your insurance payout should cover all the basics, such as care costs, medical bills, and a percentage of wage loss. In addition, it covers permanent disabilities, funeral expenses, and death benefits.
Why You Should Have Insurance
Employers who don’t provide coverage for their employees risk several legal and financial consequences. If you ever have to face a lawsuit, you will have to shell out legal fees and pay for any damages awarded by a court. You could face fines for violations, or even have your business shut down.
Workers’ compensation insurance averts such outcomes. This coverage ensures that your workers receive the best medical care possible following an accident and return to work in good health.
Coverage Beyond the Statutory Minimum for Workers’ Compensation
Some business owners assume that purchasing the statutory minimum coverage is enough for comprehensive protection. This exposes them to vulnerable lawsuits and other expenses in the event of a workplace accident. A workers’ compensation policy provides additional protection, which includes settlements to third-party claims and legal fees.
Each state has its set of regulations, which determines the specific injuries and illnesses that are covered. Generally, workers’ compensation insurance will cover medical expenses, income replacement, and death benefits. Some policies may also provide coverage for rehabilitation and retraining.
Common Injuries Covered
Workers’ compensation insurance protects employees against on-the-job injuries, resulting from violence, hazardous chemical exposure, natural disasters, illnesses, and other related causative factors. For example:
- A construction worker who slips and falls from a scaffold
- A manufacturing worker who contracts a serious illness as a result of working with hazardous materials
- A cashier who is assaulted by a customer
- A delivery driver who is in a car accident while making a delivery
Each of these workers may have a different workers’ compensation case, depending on the specific facts and circumstances of their accident or illness.
Does the Size of Your Business Matter?
You should consider getting workers’ compensation insurance, regardless of the number of employees you have on staff. Injured employees can file a claim for benefits, irrespective of who was at fault for the accident. Even a small business can face a significant financial burden if an employee is injured on the job. Workers’ compensation insurance can help protect the business from these costs.
How Much Should You Pay in Insurance?
There’s no clear-cut insurance fee across the board. The payment amount depends on your business type, its location, and the recurrence rate of previous work-related accidents. On average, workers’ comp coverage premiums range from $45 to $70 per month. They can also increase if you employ a high-risk group of workers, such as those in the construction or transportation industries.
Another factor that can influence the cost of this insurance is your state’s regulations. States with no-fault workers’ compensation systems usually have higher premiums than states with fault-based systems.
How Can You Get the Best Deal
One way you can get the best bargain on workers’ comp insurance is to shop around and compare rates from different insurers. If you buy coverage through an association or group, you may get a discount. You can also reduce your premiums by taking safety and loss prevention measures, such as implementing a safety program or choosing a lower-cost workers’ compensation carrier.
Complement Other Policies with Workers’ Compensation Insurance
Do you have general liability insurance and commercial property insurance? If so, you’ll want to augment these policies with workers’ compensation insurance coverage. Insurance experts recommend this to give your business greater protection against work-related risks. You never know when an employee might encounter a workplace injury. It’s not too late to get started. Contact our dedicated insurance agents today.
