What happens when your workers get sick or injured during work? Well, this can mean that your business slows down, and sometimes quite heavily. A worker not being able to do their job due to health reasons is always an unfortunate reason, but they happen every so often. Now, what happens to you as a business? After all, your workers are hurt working for you, so now you have to cover for their injuries or sickness. It is your duty to help pay for their costs, and this is where workers’ comp comes in.
What Is Workers’ Compensation?
Workers’ compensation is a system of insurance that provides benefits to employees who are injured or become ill as a result of their job. Benefits can include medical expenses, income replacement, and death benefits. Workers’ compensation is typically mandatory in most jurisdictions, meaning employers must provide coverage for their employees.
What Types of Workers’ Compensation Are There?
There are two main types of workers’ compensation: state-sponsored programs and private insurance. State-sponsored programs are usually run by state governments, while private insurance is provided by insurance companies.
What Does Workers’ Compensation Cover?
Benefits provided by workers’ compensation can vary depending on the jurisdiction but typically include medical expenses, income replacement, and death benefits. Medical benefits can cover the cost of treatment, including hospitalization, surgery, and rehabilitation. Income replacement benefits can provide replacement income for workers who are unable to work due to their injury or illness. Death benefits can provide financial support to the family of a worker who dies as a result of their job.
Who Pays for Workers’ Compensation Insurance?
Workers’ compensation is typically paid for by employers, either through state-sponsored programs or private insurance. In some cases, employees may be required to contribute to the cost of coverage.
How Much Does It Cost to Get Workers’ Compensation?
The cost of workers’ compensation insurance can range from a few hundred dollars to several thousand dollars per year, depending on the size and type of business. For example, a small business with only a few employees might pay $500 per year for workers’ compensation insurance, while a large construction company with hundreds of employees might pay $50,000 per year.
In addition to the cost of the insurance, businesses are also responsible for the costs of any claims that are filed. Workers’ compensation claims can be costly, depending on the severity of the injury. For example, a worker who suffers a broken bone might receive a few thousand dollars in benefits, while a worker who is permanently disabled might receive millions of dollars in benefits.
How Does One Claim for Workers’ Compensation?
To claim workers’ compensation benefits, the employee must first notify their employer of the injury. The employer will then file a claim with their workers’ compensation insurance carrier. The insurance carrier will then investigate the claim and determine if the employee is eligible for benefits.
If the insurance carrier denies the claim, the employee can appeal the decision. The appeals process will vary depending on the state in which the injury occurred.
It is important to note that workers’ compensation benefits are not available to employees who are injured due to their own negligence. For example, if an employee is injured while engaging in horseplay, they would not be eligible for benefits.
That’s all you need to know about workers’ compensation. As a business, your employee’s well-being is your responsibility, and you will need to have workers’ compensation in your arsenal of insurance policies to protect them when things go wrong. Of course, if you don’t have such a policy yet, take your time to look for the right one. This way, you can give your employees and business the protection it needs to run without too much worry.
Pascal Burke Insurance Brokerage Inc. offers an array of insurance policies that meet the needs of both general and specialty contractors. If you are looking for workers’ comp insurance for your business, reach out to us today!