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What to Consider When Selecting Workers’ Compensation Insurance

Back in the day, when workers’ compensation was just in its inception, it wasn’t considered mandatory, however, things have drastically changed over the past several years. These days, most states require it.

So what can be said about this? Namely, it can be defined as a sort of insurance that safeguards employees from any illness or injury that was sustained in the workplace. If God forbid, one of these two strikes them (yet they are insured), they won’t be forced to pay out of their own pockets for various medical expenses, and many other costs that are linked to it.

Since there are various insurance providers on the market today, it can be hard for the employers to select the right one, however, with the assistance of these tips, they just might choose the one that’s most suitable.

What Does It Cover?

As concluded in the beginning, there are a variety of different insurance providers as far as this is concerned, which can be overwhelming to some. However, what you need to know is that the workers’ compensation can be broken down into two parts.

The first one covers the injuries that a person has sustained while working, while the second one covers any work-related illnesses. The main benefits of this type of insurance include lost wages, disability, and medical assistance.

Frequently, you’ll run into insurers that only cover lost wages. Maybe that’s one of the reasons why so many employers opt for workers comp insurance in Missouri because it covers so much more in comparison to others. What’s generally great about it, is the fact that employees are going to be covered, even if they were the ones who caused the injury/illness that’s work-related.

However, you need to remember that if you sustained an injury that was a direct result of a particular criminal activity, such as drug use, then the insurance is not going to cover anything.

Be Familiar With The State Requirements

Each state has different rules, regulations, and requirements when it comes to this, hence it’s of huge importance for every business owner to get familiar with them before taking any further steps.

The state you run your company in is going to dictate where you can buy the policy, and which workers you are obligated to cover. In these instances, there are a few things that you must bear in mind:

  • You are obligated to adhere to all the state rules where your staff is performing work, or at least get familiar with the All States Endorsement 
  • Don’t forget that the policy you select is going to offer coverage within the state lines. If necessary, you can always opt for a multi-state coverage
  • As previously stated, this insurance only covers injuries that are work-related. For any other injury, you can utilize a general liability policy

In case you didn’t know, the number of employees you hire is going to affect your obligation to provide workers’ compensation insurance. A vast majority of states demand to offer coverage if you have more than one worker.

On the other hand, you have exceptions, like Georgia, where you do not need to carry this insurance unless you have more than three employees. The whole point of this segment is that it would be more than desirable to get familiar with the state’s requirements if you want to remain compliant.

Benefits & Coverage Concerning Workers’ Compensation Insurance

What types of injuries are going to be covered by it, and to what extent? This is a very important question that you need to ask while considering the right type of insurance. Getting the answer to it is going to allow you to provide the best possible financial support to your workforce and their families.

There are a couple of factors that you should take into account when choosing the coverage and benefits of the package, and they include the following:

  1. Medical costs
  2. Rehabilitation expenses
  3. Lost wages
  4. Mental health costs

Don’t Forget The Workers’ Compensation Quotes 

The cost of this insurance varies from state to state but is normally from seventy cents to $2.25 for every month for $100 of payroll. However, since these prices can vary, it would be advisable to compare quotes from several companies if you want to ensure you get the best possible deal. There are a few factors that can influence the amount of money you’ll need to set aside for this, such as:

  • Coverage levels – State law can determine certain coverage requirements
  • The line of work – Some jobs are generally riskier and more susceptible to workplace incidents. For example, the rates for a construction worker are going to be higher than for those who work in a bookstore.
  • Annual payroll – Workers’ compensation expenses are calculated per $100 of income
  • Claims history – If you have a low number of claims this can be of huge benefit for you because you’ll be able to lower the workers’ comp expense

While on this journey, you should first check out your current insurance business provider, of course, if you already have one. Why does this matter? Namely, by doing so, you may be able to get some discounts if you bundle this coverage with other policies that are related to business insurance, like professional liability, general liability, and commercial property insurance.

Even though to a lot of people, the cost is the one that’s going to make or break things, it would still be wise to get all your facts straight in terms of workers’ compensation and write down all the features and benefits you’ll be provided with. In these types of situations, you should be taking these into consideration:

  • Credits for safety programs
  • Online quotes
  • Healthcare provider network
  • Flexible payment options

As an employer, you shouldn’t be taking things lightly when it comes to workers’ compensation insurance. In other words, you must carefully think things through if you want to make sure you selected the right one.