Workers’ compensation insurance helps employees get back on their feet after a workplace injury or illness. The insurance pays for lost wages and medical expenses, and it might also provide other benefits. You need to know the following five things about workers’ compensation so you can make sure you comply with regulations and create a safe work environment for your employees.
1. Laws Require Workers’ Compensation Insurance
Employment laws vary by state, so you must learn what requirements apply to your businesses. For example, some states exempt small employers with only a handful of employees, but others mandate coverage for all employers, regardless of size. Similarly, some states allow company principles and officers to exempt themselves from coverage. Also, laws often change, so don’t assume the laws in your state don’t apply to you. Instead, research the matter on your state’s website or contact the workers’ compensation commission by telephone to find out.
2. Costs Vary for Workers’ Compensation Insurance
State laws define what workers’ compensation coverage affected employers must have, causing the price of coverage to vary depending on the location of your company. When you shop for coverage, you also discover that some insurers might offer lower premiums than others. Don’t shop only by the price tag, because some plans might include useful options that justify a slightly higher price.
3. Employee Classifications Matter
As a small business owner, you must learn to assign appropriate worker classification codes to your employees. The codes help insurance companies calculate risk as they define your premiums. Naturally, workers that fill accident-prone jobs cost more to insure than those who fill positions where few incidents occur. You need to know that you can incur unnecessary costs by assigning workers the wrong code. Don’t get too carried away, because you can be held liable for deliberately assigning misleading classifications to your workers.
4. Coverage Prevents Lawsuits
As a small business owner, you probably don’t like the idea of paying for workers compensation insurance, but you get more benefit from coverage than just complying with your state’s law. Employees who suffer from a workplace injury or illness won’t need to sue you in court to force your company to cover their expenses. Instead, they follow a set procedure to get needed medical care and other compensation from your insurer. In most cases, workers who accept treatment agree not to take legal action in exchange for their care.
5. Safety Matters
The cost of worker’s compensation coverage varies based on the size of your labor force and the type of work your company does. Your claim history will also have an effect on your premiums. Make safety a priority for your business and you will have fewer accidents that require claims. As a result, you minimize the impact of coverage on your bottom line while having the satisfaction of knowing that you have proactively created a safe working environment.
Worker’s compensation laws require you to have insurance coverage that will provide for employees who become victims of work-related injuries or illnesses. Despite the added expense to your business, the insurance offers significant benefits to you as an employer. Visit Boise injury lawyers and take time now to learn about the laws that affect your company. Shop for the coverage you need to keep your employees safe and your business in good legal standing.
About Ms. Dixie:
Dixie Somers is a freelance writer and blogger for business, home, and family niches. Dixie lives in Phoenix, Arizona, and is the proud mother of three beautiful girls and wife to a wonderful husband.
