Worker's Compensation Insurance
Workers Compensation Insurance is required in most states whether you have one or 100 employees. This insurance works twofold by protecting employees – providing benefits for job-related injuries and illnesses – and you and your company by eliminating related lawsuits. It’s important you have the right workers compensation insurance for your business’s needs, as every state and business has different requirements.
Last year, workplace injuries affected thousands of employees and cost U.S. companies more than $110 billion. Chances are, your firm will eventually have to deal with a workplace injury, which means that you will also have to deal with a workers compensation claim.
Think of workers compensation as a legal compromise: in return for compensating employees who require medical treatment or who miss work due to a workplace injury, employers avoid potentially costly lawsuits through worker’s compensation. Workers compensation also protects employees who might not be able to support themselves or their families because of a work-related injury.
Who Qualifies for Benefits?
Worker’s compensation laws rely on a "no fault" rule that provides benefits regardless of who is responsible for a workplace injury. There are exceptions, however, for employees who hurt themselves due to reckless behavior or drug or alcohol abuse. In addition, employees who cause self-inflicted injuries, or injure themselves while off-duty or while engaged in a criminal act, usually do not qualify for benefits. State laws vary as to what kinds of activities are "covered" under worker’s compensation.
Cutting Worker’s Compensation Costs
Worker’s Compensation Insurance premiums depend upon the nature of your business, the jobs your employees perform and the number of hours they work. Each job type is assigned a classification code. Riskier work is classified as such and assigned a higher premium. Thus, you might pay 48 cents in premiums for every $100 in payroll that goes to a clerk in a retail store. By contrast, a truck driver's premiums might set you back $9 per $100 of payroll. But there are ways to control your costs. Try these strategies:
- Review your classifications to make sure you're using the proper codes. If you aren't satisfied with the results, ask to review your case with your state worker’s compensation rating bureau and request an onsite inspection and rating.
- Consider a deductible. More than half of states allow small companies to cut premiums by paying a deductible on workers' comp claims. Paying deductibles, which typically range from $100 to $1,000 per claim, can reduce your premiums by as much as 25 percent
- Check your payroll. Most states don't require you to include overtime in the payroll numbers used to compute your premiums. If your state is one of them, make sure you don't figure in overtime.
Be Insurance Minded, contact BenefitSource to protect yourself, your business and your employees with Workers Compensation Insurance.
To help you get the most out of your Worker's Compensation Insurance, there are two ways you can get started:
Click on the GET A QUOTE tab on the left of this page and begin your quote right away.
or
Call 1-877-215-5431 and start working with a BenefitSource Insurance Professional.
