Workers Compensation  

What does workers compensation cover?   Benefits paid to employees generally include: unlimited reimbursement of medical expense  a portion of lost wages  some vocational rehabilitation  a survivors death benefits Benefits paid to employees generally include: Responses to lawsuits brought by injured employees or their dependents for grossly negligent acts by the employer Protection against employee claims for pain and suffering and loss of relationship (except in North Dakota, Nevada, Washington, West Virginia, Wyoming and Ohio) Who does workers compensation cover?   Workers compensation covers all the employees of the small business. Special provisions must be made if employees work out-of-state. It can cover the business owner if the business is a corporation, and the owner is actively involved in the business. It does not cover independent contractors. How does workers compensation work? When a worker suffers an injury, even a minor one, it is immediately reported to the workers compensation insurance carrier. The employee seeks necessary medical attention, and the insurance company pays the bills. If the employee misses work because of the injury, the insurance company pays the employee limited benefits for the lost time. If the employee is not able to return to the job due to a permanent injury, the insurer pays to re-train the employee for another line of work. If the employee dies, the insurer pays a death benefit to the employee's family. Why do I need workers compensation? Most states require by law that employers provide workers compensation benefits. Only businesses that pass strict financial tests by the state can consider "self-insuring." Even if approved, special measures usually must be taken to comply with the various state laws. Failure to carry it exposes the employer to paying what the insurer would have paid, plus severe fines, and possibly even jail time for violating the law. The benefits can amount to hundreds of thousands of dollars. The employer has a legal duty to make sure employees get the legally mandated benefits without delay. What affects my rates? Size of payroll Workers compensation premiums are based directly on the amount of your payroll. The higher your payroll, the more in workers compensation premiums you will pay! Job classifications The cost of workers compensation insurance also varies widely depending on the work function of an employee. In general, a premium for an employee who is a roofer is much higher than a premium for a clerical worker. Employers must accurately report payroll by classification of work performed. Your insurance company can advise you which classes apply to your employees.