What to Know About Workers' Compensation for Commercial Offices
Even though businesses continue to implement safety regulations and initiatives each year to protect their workers, people still get hurt at their workplaces. There are around 2.6 million nonfatal injuries in private industries in the United States each year. Accidents not only put a strain on the affected employee but the business owner as well.
Workers’ Compensation insurance is designed to help safeguard you and your employees in the event of a work-related illness or injury. Failing to have a comprehensive insurance policy in place could result in expensive civil litigation and other costs.
This blog will discuss the basic details of Workers' Compensation insurance policies for commercial offices. It may help you rest easy while you support sick or injured employees as they recover.
What Is Workers’ Compensation?
Another common term for Workers' Compensation is Workers’ Comp insurance. It's a program that's mandated by the government for almost every office that has employees. Workers' Comp provides employees assistance if they get sick or injured because of their job.
The coverage provided by Workers' Comp varies from state to state and by insurance provider. Keep in mind that Texas is the only state that doesn't require private businesses to carry Workers' Compensation. However, private employees who partner with government agencies may need to have a policy for their employees who work on projects contracted by the government.
Workers' Compensation insurance can provide your office with a safety net in the event of a work-related injury or illness. This policy can protect you from legal and financial expenses. It helps to ensure your workers can be taken care of and that they may not have to pay for their medical care out of their pockets.
Do I Need to Purchase Workers' Compensation?
As mentioned earlier, most private businesses in the US are required to have Workers' Comp insurance. Failing to have a policy in place can put your business at major financial risk, even if you fall into one of the exempt categories. Your employees could sue you for lost wages for their injuries or you could get fined by the state.
Some of the types of businesses that might want a Workers' Comp policy include:
- Offices with more than one employee
- Businesses that are going to expand their team or hire their first worker
- Your state requires you to buy Workers' Comp.
Most businesses typically purchase a policy as soon as they bring their first team member on board. Workers' Comp isn’t mandatory in some states until you have a certain number of employees. That's why it can be important to check with your home state or talk with an expert.
The size of your business and the roles of your employees determine if you need Workers' Comp coverage. Most states require full-time workers to be covered. The laws surrounding coverage for interns, temps, and contractors vary by state.
What's Covered Under Workers' Comp?
The goal of Workers' Compensation coverage is to provide your employees with financial assistance. This policy can cover some of the following types of things:
- Lost wages
- Medical expenses
- Ongoing care costs
Keep in mind that Workers' Comp doesn't cover illnesses or injuries that take place outside of work. Your employees might not be able to receive financial help if they intentionally hurt themselves or are intoxicated while on the clock.
Lost Wages
Your employee might need to take time off work to recover from the injury or illness. Workers' Comp can ensure they continue to get paid even if they're not working while they recover.
Medical Expenses
Injured workers can have their medical expenses paid for by Workers' Compensation insurance. Some of the things that may be covered under your policy include:
- Surgeries
- Doctor's appointments
- Prescriptions
- Emergency room visits
Ongoing Care
Your employee might suffer from a job-related illness or injury that requires more than one appointment. Workers' Comp can cover future appointments, like physical therapy.
How Does the Workers' Comp Claims Process Work?
While the claims process differs depending on what state you're in and your insurance provider, the general timeline is the same. You should file a claim as soon as you're made aware of a work-related injury or illness.
You Learn About the Injury or Illness
The claims process kicks off as soon as you learn about the workplace incident that affected your employee. They should provide you with as much information as they can about their illness or injury and what led up to it. This can include:
- The kind of injury/illness they sustained
- When it happened
- Where and how it occurred
You should make it clear to your workers who they should report an injury or illness to. This could be a manager, human resources coordinator, or another type of supervisor.
They Receive Treatment
Your onsite first aid materials might be sufficient enough to help take care of minor injuries. If this is the case, you may only need to submit a report-only claim to your insurance carrier. Your employee should be taken to a medical facility if they have a more severe injury.
The injured employee might have to seek treatment from a carrier/employer-designated provider in certain cases. It depends on the state where the claim gets filed and the insurance provider.
You Report the Injury or Illness
It's up to you to report the illness or injury once your employee notifies you. Some of the information you might need on hand includes:
- Employee job and personal information
- Employer information
- Injury/illness details
- Medical care info
The Claim Gets Accepted or Denied
Your insurance carrier will investigate the Workers' Compensation claim before approving or rejecting it. The main thing they're trying to determine is if the injury occurred during the scope and course of employment.
Get a Quote for Small Business Insurance From PolicySweet
Not having a Workers’ Compensation policy in place can be costly. Stay in compliance while helping to safeguard yourself and your employees by obtaining Workers' Compensation.
PolicySweet® strives to make getting commercial office insurance easy. We can help you determine how much coverage you may need depending on your state and industry.
Fill out our online form to start your free small business insurance quote today.