Workers Compensation helps business owners protect their most important asset- their people.
What is workers compensation insurance?
Workers’ compensation coverage can provide medical expenses, lost wages, and rehabilitation costs to employees who are injured or become ill “in the course and scope” of their job. It also pays death benefits to families of employees who are killed on the job.
The coverage is mandated by each state and the wage and medical benefits vary by state.
What does workers compensation cover?
-
Accident or Injury on the job
-
Illness from workplace activities
-
Repetitive Injury due to the job
-
Disability from workplace incident
-
Funeral Costs if death occurs due to workplace
Workers Compensation benefits typically work on two levels:
To protect employees…
-
Medical expense benefits
- Short term care
- Long term/ongoing care
- Medical advisory plans to help get employees back to work
-
Lost wages benefits
- Lost income is covered if absent due to injury/illness on the job
-
Funeral costs
To protect business…
-
May limit a business owner’s liability if sued by an injured employee
-
Safety resources from the insurance carrier
-
Investigation of claims by insurance carrier
Claims Scenario Examples:
-
Kitchen casualty: A restaurant cook begins to prep the omelet bar for the morning breakfast rush. As he turns the burners on, a flash fire occurs and he sustains second degree burns to his arms and face. As a result, he is hospitalized for several days and is out of work for several months. A comprehensive workers compensation claim program can help simplify the process, so the patient can focus on recovery. And with a national network of experienced nurses, doctors, ergonomic professionals and pharmacists at their disposal, an injured employee can be on their feet and back to work sooner.
-
Multitasking distraction: Paperwork review, conference calls and client meetings – it’s a typical day for the busy mortgage broker. An email chirp reminds him of his next appointment, and he hurriedly rushes out of the office while simultaneously pulling up documents on his smart device. Because he is distracted, he doesn’t notice that the floor just outside his office was recently mopped to clean up a coffee spill. As a result, he slips and falls. Embarrassed, he quickly gets up and walks away, hoping that no one will notice. Soon after, his left shoulder feels increasingly painful, so he goes to the emergency room and discovers that he has torn ligaments that will require additional medical attention. Fortunately, the business had the right protection to cover his workers compensation claim.
-
Not-So-Sweet: When a store employee notices that the supply of candy bars is running low, she proceeds to the storage room to replenish the stock. They are inconveniently located on the top shelf, so she locates a ladder and climbs up. When reaching for the box, she loses her footing and falls off the ladder. She is taken to the hospital and diagnosed with a concussion, as well as neck and arm injuries that require five months of physical therapy. The candy store owner never imagined that a simple re-stock could turn into downtime and a mountain of medical bills for a valued employee.
FAQs:
Who pays for it? Employers pay premiums. When there is a claim, the insurance company checks to see what benefits are owed, and then pays the injured party. In this case, that party would be the injured worker.
Is it required? In most states, employers are required to carry workers compensation insurance – even for temporary or seasonal staff. Workers compensation coverage can provide protection for business owners and employees after a work-related injury or illness. For the injured employee, it helps provide important benefits like medical care, lost wages and more. For the business, it helps to get valuable – and vital – employees back to work quickly to keep business running smoothly. Plus, workers compensation gives business owner a peace of mind knowing that your employees will get the help they need to recover and return to work as soon as medically appropriate.
Do 1099 Employees need coverage too? Yes. In most states workers compensation laws require that if you hire an uninsured Independent Contractor, you must provide workers compensation benefits.
How much does it cost? In most states, the cost of workmans’ comp insurance can vary between insurance companies as they compete for customers. Despite the variability, all insurance companies base workers’ compensation premiums on the amount of payroll an employer has as well as how dangerous the work is.