The Basics of Workers’ Compensation Insurance

life-insuranceEmployers must take the proper measures to ensure workplace safety. However, there are accidents even in the safest workplaces. To be prepared for employee accidents, employers must have workers’ compensation coverage. This insurance will provide valuable benefits for the employer and the employee who sustains injuries.

It’s important for employers to understand what is covered by a workers’ compensation policy. Each state has varying statutes regarding workers’ compensation, so it’s important to speak with an agent to learn about individual state statutes. Each state determines what injuries are covered and to what extent. They also determine how much coverage employers should purchase. Businesses that expand to other states must consider the different rules of each state they operate in. Workers’ compensation policies cover injuries and accidents that happen while an employee is on the workplace premises or away from the workplace on the course and scope of performing their duties.

Workers who are injured receive the necessary medical treatment. There are several guidelines that outline what treatments and diagnostic tests are considered as necessary. Benefits for income replacement are based on whether the employee’s disability is temporary or permanent. Although some states allow the benefits to be paid for the entire length of the disability, some place limits on the amount of time that benefits can last.

Many employers wonder whether they need workers’ compensation coverage or not. In most cases, unless employees are paid on commission or they’re company partners, employers need to purchase workers compensation coverage. There are some states that exempt employers with only a few workers. However, it’s important to speak with an agent about individual state laws regarding workers compensation insurance.

There are individual state rules regarding where an employer can purchase workers’ compensation insurance. It is not part of a BOP, so it’s necessary to purchase it in addition to this policy. Speak with an agent to learn how to get this valuable coverage.

The premiums paid by employers vary by the nature of their business. For example, employers who hire workers to do dangerous jobs must pay more for workers’ compensation insurance. If the nature of the business is dangerous and is likely to result in a serious injury or disability, it’s important for employers to plan on paying more. Experience ratings can be beneficial for employers who must pay more initially but are able to maintain a low claims volume. Speak with an agent to learn how experience ratings work and how they can help premiums become lower. There are several other important aspects of workers compensation insurance that must be understood. Contact an agent to ensure that ample coverage is in place.

About Brian Hendricks

Brian Hendricks is the President of Fidelity Insurance Group. Brian started Fidelity in 2003 with 0 clients. Today Fidelity Insurance Group is a Premier Independent Insurance Agency in Florida with over 3,000 families and businesses insured. Brian currently serves on advisory boards for 2 of the largest property insurance companies in Florida. Knowlege, Integrity, and Committment are his and his agency's guiding principles.
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