Workers’ compensation, often called workers’ comp, is an insurance program that provides benefits to employees in the event of injury, loss of limb, workplace-induced illness, lost wages, medical treatment, death, and other workplace related harm.
Essentially, it’s a trade-off for liability. With a workers’ comp policy, an employee cannot sue their employer for injury while on the job. Could you use a workers comp refresher? Read on!
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Is Workers’ Comp Required?
Workers’ comp is required in nearly every U.S. state. The requirements vary by company size, employee count, and industry. The specifics of the claim process and medical benefits vary by state, so make sure you are up to date on your state’s latest policies.
Remember: Workers’ Comp Protects the Employer
While it may seem like just another one of the many business expenses hitting your books, workers’ comp insurance actually benefits the employer. It protects you from penalty and litigation by injured employees. Costs related to injury or death could range in the thousands to hundreds of thousands and more. You do not want this sort of liability. Workers’ comp is good for both employee and employer. However, it’s important to remember that independent contractors are generally excluded from workers comp.
How Workers’ Comp Costs are Determined
Workers’ comp insurance premium costs vary based on industry. Premiums in an industry such as construction or roofing carry a higher cost. The cost can increase or decrease based on the number of claims filed, so it is advantageous in every way to minimize risk and maintain a safe workplace
Focus on Keeping Costs Low
It is in the best interest of your employees and yourself to keep a healthy work environment. Pay attention to your employee needs. Sponsor health contests and fitness challenges. Train all employees on safety. Keep a safe warehouse.
Coverage Applies Regardless of Fault
Benefits are awarded regardless of fault. Employees can be covered by workers’ comp even if it was partially their fault that the injury occurred. However, if an employee is under the influence of alcohol or drugs, benefits may not apply.
Required Employer Duties
Employers must post notices indicating employee legal rights to receive treatment, information about workers’ comp benefits, and insurance information. Employers must also give injured employees claim information within 24 hours of the incident, in most cases.
Workers’ comp is a necessary business expense in any industry. Protect your business and provide a safe, healthy environment for your employees.
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