Workers’ compensation coverage is essential for most businesses, but for business owners, it isn’t easy to conceptualize what you’re purchasing, or the responsibilities involved. Before making your purchase, look into different available coverages, the kind of coverage your business needs, and methods to keep costs down while still prioritizing the safety of your employees.
To give you a general idea of the type of workers’ compensation insurance you should be considering, here are five things your business should be aware of.
1. Workers’ Compensation Insurance
What is workers’ compensation insurance? In a nutshell, this type of insurance offers protection for those who become injured or ill on the job. The injuries must be proved by a doctor via a solid argument and evidence.
These incidents can range from accidents, exposure to harm, burns, or injuries resulting from lost hearing during loud noises. You can read up on property casualty news to discover more about injuries and situations where workers’ compensation insurance is necessary.
2. Benefits Workers Receive
Now that you have a general definition of workers’ compensation insurance, here are the primary benefits offered by some types of workers’ comp insurance:
- Provides covered medical care for the injured worker
- Provides temporary disability benefits for the duration of time the employee is healing and unable to work
- Provides permanent benefits for disability should the employee be unable to return to work
- Provides benefits for retraining and job displacement if the job is no longer applicable to the worker following the injury
3. Requirements for Workers’ Compensation Insurance
Every state is required to purchase workers’ compensation insurance, except for Texas. Texas must purchase workers’ compensation insurance if a company is working for a government entity under contract.
State guidelines for workers’ compensation insurance depend on how many workers represent a company. Half of all the states require an employer to provide coverage if they have more than one employee.
Certain state-mandated specifics pertain to workers’ compensation; you’ll want to check the laws for your state before going ahead with purchasing a workers’ comp insurance policy. Your local businesses and small businesses need workers’ compensation as well.
4. Common Workplace Accidents
Every industry has its share of common claims for workers’ compensation. Depending on the industry, you might find that strains, fractures, soreness, and punctures are the most common.
According to 2017 records, across industries strains are the most common work-related injury reported. Industries like retail and manufacturing are more likely to report cuts and tears than food services or healthcare.
If you’re concerned about the risk of injury at your workplace, increasing workplace automation tools may eliminate some of the need for manual labor and prevent safety issues from arising altogether.
- Workers’ Compensation Insurance Costs
The costs for workers’ compensation insurance vary between states. The cost is based on the employee’s work, with more coverage granted to jobs with more significant risk. Jobs based on soft professional skills like data entry will typically get less coverage than construction workers.
The costs are also influenced by classifications laid out by the National Council on Compensation Insurance, which establishes how risky different job types are and the respective insurance coverage granted for each position.
Recent statistics have recorded the average workers’ compensation for office professionals and sales at 0.9% of total compensation, equating to $0.22 per hour. For jobs like construction and labor, the cost was 3.2% of total compensation, equating to around $1.16 per hour.
Get Workers’ Compensation Insurance for Peace Of Mind
For the security of your business and the safety of your employees, workers’ compensation insurance is a necessary purchase. With it, you can reinforce a safe and competent work environment.