As an employer, one of your top priorities should be keeping your employees safe. Unfortunately, the reality is that, even in most careful companies, work-related illnesses and injuries may be inevitable. With that in mind, it’s necessary to explore ways to minimize the consequences of these incidents and limit the ramifications for both affected workers and your business, such as by having workers’ compensation insurance.
For over 60 years, the agents at Elliott Hartman Insurance Services have used their experience and expertise to help businesses like yours in the Waterloo area protect themselves with optimal insurance portfolios.
What Does Workers’ Compensation Insurance Cover?
Workplace injuries and illnesses are serious incidents that can result in devastating losses and damages. Fortunately, workers’ compensation insurance can play a critical role in cushioning the impact of these events and helping all parties manage the situation. In general, most workers’ compensation policies provide aid for the following expenses:
· Medical treatment—Your coverage can help pay for an employee’s care and rehabilitation if they are injured on the job or develop a work-related illness.
· Lost wages—If an employee who has become ill or been injured is unable to work or must work in a reduced capacity, workers’ compensation coverage may help them recoup their income.
· Disability benefits—Your policy may cover disability benefits in the event an incident leaves an employee with a temporary or permanent disability.
· Death/dependent benefits—If a workplace incident is fatal, your coverage can render assistance to an employee’s family, such as for funeral expenses.
· Legal costs—In the event an employee or their family files a lawsuit against your business following an incident, workers’ compensation can provide aid for your legal expenses.
In addition to these direct benefits, knowing your company has adequate workers’ compensation coverage can also provide you and your employees with comfort and peace of mind.
How Much Does Workers’ Compensation Cost?
Like most types of insurance, the cost of a workers’ compensation policy may vary. To determine your premiums, providers will generally consider the following:
· Business location—State laws and requirements can have a major impact on your insurance costs. Your location may determine several cost-related factors, such as whether part-time employees require coverage.
· Number of employees and payroll—Companies with higher total payrolls can expect to incur higher premiums to cover their workforce. In general, this also means businesses with more employees can expect to pay more for coverage.
· Workers’ compensation class code—The National Council on Compensation Insurance and state officials assign and maintain classifications for employees based on their duties and subsequent risk levels.
· Experience modification rate—This figure refers to your company’s risk level based on prior incidents and future risk levels. An experience modification rate (EMR) of 1.0 represents your industry’s average. In general, if your business has an EMR below 1.0, your workers’ compensation costs may be lower, whereas a rate above 1.0 could mean higher premiums.
Get the Right Coverage
Workers’ compensation insurance is a critical type of policy for employees of all sizes and across all sectors. Even for careful employers who operate in relatively safe industries, a lack of workers’ compensation coverage could mean comparably simple incidents, such as a worker slipping on a wet floor, may lead to significant damages.
The experts at Elliott Hartman Insurance Services can help assess your coverage needs and build a policy to secure your future.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.