If you own or run a business of any size that employs other people (and possibly even if you’re the only employee) it is likely required that you have at least a basic form of worker’s compensation coverage. This coverage provides security and peace of mind for everyone involved that not only will workers have their medical needs met in the case of a work-related accident or illness, but their financial needs as well.
However, insuring employees requires an understanding of the intricacies involved with workman’s comp. This responsibility usually falls on the insurance provider you choose to partner with. But for this post, we simply wanted to highlight 6 important points that will better inform you about the coverage aspect of your business.
1. Complying with Legal Obligations
As an employer, you are responsible for understanding the basic or minimum coverage requirements for your employees. These requirements are often determined by state laws, although navigating the complexities of those laws can be quite difficult. The insurance provider you select will help with those kinds of details.
What you most need to be aware of is that compliance is mandatory, and failure to abide by regulations can result in anything from fines to more severe penalties and even legal consequences.
2. Implementing Safety and Training Programs
Safety isn’t just something for construction companies and manual labor providers to be concerned with when insuring employees. Even corporate office environments have various hazards and other things that can be dangerous. Having regular safety meetings, along with informative training can be a tremendous deterrent to workplace incidents.
3. Eligibility of Employees
Equally important for employers is clarification as to who is covered under workman’s compensation. As a general rule, it extends to all employees, meaning full or part-time, as well as temporary or third-party vendors and workers. However, the specifics of coverage vary based on the provider, the policy selected, and state laws.
4. Going through the Claims Process
Unfortunately, no matter how safe of a work environment you foster or how careful your employees may be, an accident is almost certain to happen at some point. When it does, it helps to be familiar with what to expect. There needs to be a clear protocol for swiftly contacting medical care providers, along with documenting and reporting the injury/illness quickly to the insurance provider.
5. Understanding How Premiums Are Calculated
Not all premiums are created equal. Most insurance providers use a formula to determine a company’s insurance premiums. This equation usually consists of data reflecting claims history, safety record, and other relevant information. Maintaining good safety stats can often help lower premiums.
6. Return-to-Work Programs
Employees can greatly benefit from programs that let them get back to work when they are ready. Even with modified duty requirements, employers can help ease the transition for workers, reducing the overall cost of compensation claims, and maintaining certain levels of productivity.
Benefits of Insuring Employees
Perhaps most important of all for employers to understand, is that when employees know they will be taken care of in the event of injury or illness, it creates a sense of trust and security. This is good for overall morale and productivity, which is always good for the bottom line.