What is Workers’ Compensation?
Workers’ compensation insurance is set in place for workers to provide benefits for any kind of work-related injury or illness including medical bills, lose of income, and much more. Workers’ compensation also contributes to a deceased worker’s family with means of a financial benefit. Lastly, if a family of the worker decided to sue the company, this insurance aids in the cost of the legal fees you may incur. Injuries in the workplace are more common than one may think; according to the U.S Department of Labor, it was reported that 4,679 fatal work-related injuries occurred in 2014.
How can workers’ compensation protect your business? An employee injures himself or herself at work and needs to go to the emergency room, workers compensation will cover that. Following the emergency room visit, your employee needs medication and physical therapy, which will also cover that. If your employee isn’t on company grounds, yet is driving to the office from meeting a client and gets into a car accident, that will also fall under workers compensation coverage. However, commuting and form the office is not covered unless an employee is out for a specific work related task.
How much will I be spending?
Depending on your state, insurance policies can vary with price. The premiums depend on the size of your payroll, the type of work of the employee. A smaller business may pay around $2,000 per year, while larger companies may spend more upward of $10,000. Another factor that affects the price are the previous claims that have been processed by your company. Sectors of the workforce that are more dangerous will have a higher premium than companies that operate more desk jobs.
Is Workers’ Compensation Required?
By law, workers’ compensation insurance is required. Usually, each state has some different requirements.
How does Workers’ Compensation work?
Workers’ Compensation kicks in when an employee suffers a work related injury or illness. It works toward medical bills and protects cover wages. Workers’ compensation covers both full and part- employees. Once an employee gets injured on the job, they have to report in with 30 days of the injury.
