Workers Compensation Insurance

Workers Compensation insurance provides medical benefits, vocational rehabilitation, and wage replacement to employees injured or acquire an occupational disease while on the job.  

Workers Compensation Insurance is often mandatory for many businesses, especially if they have a certain number of employees. But not all states require this protection and it comes down to the decison of the business owner.

Deciding to not carry a Workers Compensation insurance policy on your business could be costly. Without this protection, an injured employee could claim negligence against the business and/or business owner, resulting in a law suit.  Or depending on the state requirements, a business owner could face penalities, fines, or even jailtime.  

Worker's Compensation only covers injuries or illnesses when they occur as a result of duties performed on the job or while at work.  

Examples of injuries which may be covered by workers' comp insurance include lifting heavy equipment, slipping on a wet or oily surface, or sustaining injury due to fires or explosions.

Workers' Compensation Insurance may cover:

• Medical bills for employees hurt or sickened at work.
• Ongoing care, including rehabilitation.
• Wages missed while recovering.
• Employee lawsuits over injuries (through Employer's Liability Insurance).
• Funeral expenses, if an employee is killed on the job.
• Death benefits to support the deceased's family.

It does not cover:

• Third-party lawsuits.
• Lawsuits over professional errors.
• Wages for a replacement worker.
• Parental leave benefits.
• OSHA penalties.

Worker's Compensation insurance costs vary depending on the type of work you do and your location.  For example, an office employee does not have the same work related risks as a roofer, and the cost of Worker's Comp will be lower because the risk of injury is less.

There are the 3 key elements to determining your business Worker's Compensation cost:

1. Class codes are given for all different types of businesses.  These codes are used to determine the level of risk for injury based off of the job description of an employee. 
2. Experience Modifer starts at 1.0 and is used to determine whether a business owner should pay more or less depending on their claims history.  If they have had Worker's Comp claims in the past, their rate may be increased for a time.
3. As a business owner, you provide the estimated annual payroll for yourself and your employees, including subcontractors who do not carry their own Worker's Compensation. 

 At the end of each policy period, there is a mandatory audit, which confirms what was estimated at the beginning of the policy is the same as the end of year actual. 

Something to keep in mind: changes to employees during the current policy term.  If a business owner hires employee(s) and decides to wait until the end of year audit to notify the company, it could be costly versus notifying the carrier immediately. 

If the audit results in additional premium owed for a new hire, this bill--in addition to the Worker's Compensation renewal--plus the revised new changes, could result in two steep bills due within 30 days of one another.  

We specialize in covering local businesses like yours. We have everything you need right here, including:

• Coverage of temporary staff, full-time employees, and independent contractors
• Claims responsiveness 
• Tailored coverage for the specific risks of your field and industry
• Knowledgeable agents 
• Coverage for contracts 
  

You may think you want the cheapest insurance you can find, but realize you may not be getting everything you bargained for.

While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.

Our Consultative Insurance Group team of professionals help protect your business by always looking for ways to protect you better, including carefully choosing the insurance companies we represent to be both affordable and responsive.