What is workers’ compensation insurance?
Protecting your employees is one of the most important things you can do as an employer. Workers’ compensation insurance will help to show employees that you are invested in them, and you want to ensure they are safe and protected.
Workers’ compensation insurance is designed to protect workers in the event of an accident or illness that happens in the workplace. Workers’ compensation insurance will provide medical and wage benefits for employees. Business owners are protected from civil suits as workers’ compensation insurance will cover these costs as businesses purchase the insurance to protect themselves, but also to care for employees that do end up needing to use the insurance.
Workers’ Compensation Insurance
Workers’ compensation is designed to provide employees with coverage for medical costs, lost wages, and rehabilitation costs needed due to an injury or illness caused from the workplace. If an employee is killed on the job, workers’ compensation will provide death benefits for the family for the employee.
Employees will simply file a claim for compensation with the employer’s workers’ compensation insurance company rather than suing the employee for lost wages and medical expenses. If an employee or employer does not file the correct claim, or embellishes the claim, the other party does have the right to dispute the claim. There are some situations where an employee does choose to waive their rights to workers’ compensation insurance and decides to sue their employer for recklessness. Hiring a good workers’ compensation attorney is important for both parties if there is a dispute related to the injury or illness that has occurred.
Costs of Workers’ Compensation
The costs of workers’ compensation insurance varies by state and rates are based on the various “classes.” There is an experience rating that does provide businesses with the ability to modify rates for their loss history. Safer businesses are rewarded with a lower premium, which is why many companies enact safety protocols and adhere to compliance regulations to provide effective safety training to employees.
Do I Need Workers’ Compensation Insurance?
How do you know if your business will need workers’ compensation? All states do require workers’ compensation to be purchased (with few exceptions). Failure to provide workers’ compensation insurance can end up leading to serious fines and possible imprisonment.
Recording Workplace Accidents
It is important to keep record of accidents that occur. All work-related accidents need to be reported within a specific number of days to the state workers compensation board. Filing the “first notice of injury” to the insurance company can help the employee to receive the medical care they need quickly.
The Department of Labor has multiple programs that have been designed to assist in preventing workplace injuries and illnesses. We recommend contacting our Kaysville insurance office to learn more about workers’ compensation insurance for your organization.