A Guide to Worker’s Compensation Insurance for Corporations
Did you know that in 2021, there were around 2.6 million workplace injuries and illnesses in the US? This figure only emphasizes the importance of Workers' Compensation insurance for corporations.
As a corporation, the safety and wellbeing of your employees can be crucial to the success of your business. Unfortunately, accidents can happen at any time, leaving your employees injured and unable to work. This is where Workers' Compensation insurance for corporations comes in.
By providing financial support and medical benefits to injured workers, Workers' Compensation insurance can help your business stay afloat during difficult times. It can help ensure that your employees receive the care they may need to recover.
But how do you choose insurance for your business?
Here's a comprehensive guide to Workers' Compensation insurance for corporations.
What is Workers' Compensation Insurance?
This type of coverage can help protect employees in the event of a workplace injury or illness. It can cover expenses related to an injury or illness, including lost wages, medical bills, and rehabilitation.
This coverage can also protect employers from potential lawsuits. It can also help reduce interruptions to the business.
The requirements and benefits vary depending on the industry, location, and business size.
What Doesn't Workers' Compensation Cover?
Workers' Comp insurance policy can cover various work-related injuries and illnesses. There are specific exclusions, including:
- Injuries that occur outside of work or during off-duty hours
- Injuries caused by the employee's negligence, misconduct, or intoxication
- Injuries that are intentionally self-inflicted or result from a suicide attempt
- Injuries that arise from a personal dispute or a criminal act by the employee or a third party
- Injuries that are aggravated by a pre-existing condition that is not related to work
- Illnesses that are not caused by occupational exposure or hazards
- Illnesses that are contracted from a common source, such as a cold or flu
- Cosmetic injuries that do not affect the employee's ability to work
- Mental or emotional injuries that are not accompanied by a physical injury
These are some of the general exclusions that may apply to most Workers' Compensation claims.
However, the specific rules and exceptions may vary depending on the state, the employer, and the insurance company. Reach out if you have questions about your eligibility for benefits.
What are the Requirements for Workers' Compensation Insurance?
The requirements for Workers' Compensation insurance coverage can vary by state. But generally, employers should carry this insurance if they have one or more employees. Additional requirements may include a minimum number of employees or specific types, e.g. full or part-time.
Some states have different requirements based on the type of business. You can double-check with your state’s Workers' Compensation board.
What Should Employers Consider When Purchasing Workers' Compensation Insurance?
There are several factors to consider when comparing Workers' Comp options. These could include:
- The type of coverage needed, including medical expenses, lost wages, and other benefits.
- The cost of coverage and how much the company may be willing to pay for it.
- The policy terms, including the limits of coverage, the exclusions, and the deductibles.
- Nature of the business and industry-specific risks employees face
- Coverage limits and whether they provide adequate protection for employees
- The efficiency of the claims handling process
How Much Does Workers' Compensation Insurance Cost?
Affordable Workers' Compensation insurance can vary based on various factors. These include the size of your business, the number of employees, the type of coverage, and the type of work done.
Generally, the larger the company, the more expensive the coverage. The cost of coverage can also depend on the industry and the type of work the employees perform.
How are Premiums Calculated?
Your payroll and industry categorization codes are typically used to determine premiums. The location of your company has a significant impact on rates as well. Premiums may be costlier for establishments in regions with a high risk of natural disasters.
Additionally, premiums fluctuate based on a company's claims history compared to other businesses in the same industry. Those with more claims than usual often attract a higher premium, while those with fewer claims usually have a lower premium.
Review the Coverage Terms
When considering Workers' Comp insurance coverage, reviewing the policy terms carefully can be essential. You may want to understand what's covered and excluded from the policy.
Help ensure you know the claims process that is in place for filing a claim. You may also want to consider other coverage options, to help provide financial protection for your business.
Does Insurance Cover Employees When They Travel or Work in Other States?
This can cover claims made in the states listed in your policy. Employees hurt while working in another state may not be compensated for their damages. Notify your insurance provider if you establish an operational unit in another state.
This can help ensure that the state is included in a policy line designated for declarations. Your policy might have a section for additional states where you can list any states where an employee might occasionally work so that claims made there could be covered.
Develop a Return-To-Work Program
Corporations may want to consider a return-to-work program to help injured or ill employees resume duties as quickly and safely as possible. Individuals who are content with their medical care may return to work faster.
Maintain regular contact with staff members off the job due to an injury sustained at work. Workers who feel valued, missed, and still a part of the team are often more excited to return.
Successfully reintegrating into the workforce can be another feature of the return-to-work process. An insurance provider can help determine the wounded worker's requirements.
Learn More About Workers' Compensation Insurance for Corporations
The above tips can help ensure you have the coverage you need to help protect your business and employees. Understanding the basics of Workers' Compensation insurance, such as the ones discussed above, can help ensure you make an informed decision and can provide adequate coverage for your employees.
Whether starting a business or looking to replace existing coverage, we can help. Contact us today for your insurance service needs.