What is Workers’ Compensation Insurance for Small Business?

(Coming in the future to Coterie Insurance)

Workers’ Compensation insurance is a property and casualty insurance product required for businesses with one or more employees. Workers’ Compensation insurance is coming soon to Coterie Insurance!

Workers’ compensation coverage protects both the employer and the employee in the case of an injury incurred at work. Employees are protected as the insurance policy will pay for medical bills related to the injury, as well as lost wages due to being unable to work. Small business owners are protected by limited financial coverage for legal fees and damages.

Workers’ compensation coverage includes medical care for employees injured (or who contract an illness) during work. If needed, workers’ compensation policies also cover rehabilitation to get the worker back to health and back to work.

If the impacted worker is unable to return to work, workers’ compensation insurance can cover disability benefits. In the event of a fatality at work, the policy pays out death benefits to the survivors. Lastly, if a workers’ compensation claim is challenge or the small business owner is sued, the policy would defend and indemnify the employer.

Workers’ Compensation Explainer Video

Small businesses need insurance.
Is Workers’ Comp the right coverage for you?
Find out in this overview video!

Securing small businesses with Workers’ Compensation Insurance

In the U.S., Workers’ Compensation insurance is required

State laws differ, so be sure to look up regulations in your area.

In the event that one of your staffers is injured on the job, workers’ compensation will cover his or her medical costs and wages during the recovery period. Workers’ Compensation policies cover medical costs, lost wages, disability payments and death benefit for work-related injuries and illnesses.

The purpose behind Workers’ Compensation is “no fault”. This concept means job-related injuries/exposures are an accepted fact of doing business. Workers’ Compensation coverage brings advantages to both employers and employees by managing the financial consequences of accidents, injuries, illnesses in the most efficient and judicious manner.

As an employer, it’s your responsibility to keep employees healthy and safe on the job.

How does Workers’ Compensation Insurance work?

Workplace health and safety incidents can carry serious ramifications. Unfortunately, even with adequate controls in place, accidents can still happen—resulting in costly workplace injuries and illnesses. That’s why it’s crucial for your organization to have workers’ compensation insurance.

Workers’ Compensation insurance coverage can provide the following benefits for both your employees, and your business:

Coverage for medical expenses—In the event that an employee requires medical attention for a work-related illness or injury, workers’ compensation insurance can cover the accompanying treatment costs. This includes expenses related to hospital visits, medical procedures and prescriptions.

Protection against lost wages—After an employee becomes ill or injured at work, they will likely need to take time off to properly recover. During this time, workers’ compensation coverage can help reimburse some of the employee’s lost wages.

Coverage for ongoing care and rehabilitation—A severe work-related illness or injury can leave an employee with recovery costs that extend far beyond a single hospital visit. Workers’ compensation insurance can cover these ongoing care expenses, such as physical therapy.

Death benefits—In the tragic event that an employee passes away in a work-related incident, workers’ compensation coverage can provide death benefits to the employee’s family members.

Compliance assistance—Although specific rules vary by state, the majority of organizations with more than one employee are legally required to have workers’ compensation insurance. In other words, this form of coverage not only benefits employees, but it is also required by law.  

Protection for your business—Workers’ compensation insurance also typically provides organizations with legal liability coverage. In the event that an organization is sued for negligence related to a workplace injury or illness, workers’ compensation insurance can help cover attorney fees, court costs, and settlements or judgments.

Small business insurance without the hassle.

Spending time answering question after question about your business just to obtain the insurance you need is simply a waste of time. That’s why we’ve made this process both seamless and stress free. Coterie will be offering Workers’ Compensation insurance soon!

Common Questions about Workers’ Compensation Insurance

Whether you’re a home-based business owner, run a micro small business, work as a contractor, own a startup, or fall into the many other types of small businesses, you have probably experienced first-hand the frustration of trying to find affordable coverage without having to jump through hoops. Check out these common questions that small businesses ask when it comes to Workers’ Compensation insurance.

Does your small business need Workers’ Compensation coverage?

Almost every state requires businesses to carry workers’ compensation coverage, with Texas being the exception.  Requirements are based on the number of employees and vary between 1 and 5 employees.

The business owner (employer) pays the cost of workers’ compensation coverage. A policy lasts for one year and each state has their own workers’ compensation requirements.

If your small business does not carry workers’ compensation insurance, when it is required by law, you could be exposed to large fines and penalties. You could also be held liable for replacing employee’s lost wages and paying medical expenses for workplace injuries, illnesses, and even death.

What does Workers’ Compensation cover?

Workers’ compensation insurance helps pay for medical expenses related to work-related injury or illness, along with lost wages, disability benefits and death benefits.  This would be Part 1 of the Workers’ Compensation policy.

Employer’s Liability insurance is also covered in the policy.  This coverage protects the employer from lawsuits claiming injury or illness from the employer’s negligence and legal defense costs. This would be Part 2 of the Workers’ Compensation policy.

Do I need Workers’ Compensation if I am self-employed or an independent contractor?

If you work for yourself, you’re generally not required to purchase workers’ compensation coverage. However, you may want a policy to help cover medical bills and lost wages as some health insurance policies exclude coverage for work-related illnesses and injuries.

As an independent contractor, carrying workers’ comp insurance helps ensure your bills will be covered if you’re injured while working.

What is the cost of Workers’ Compensation insurance?

The cost of workers’ compensation insurance policies varies between businesses. There are no standard costs but factors that go into determining premiums include payroll, type of work, industry and more.Rates are also impacted by location, as insurance is regulated by each state, workers’ compensation laws vary by state. Work with a licensed insurance agent or broker so, you can understand the specific regulations in your area.

How can I control Workers’ Compensation costs?

There are many ways for you to control workers’ compensation costs for your small business. The most important is to convince your employees that maintaining a safe workplace is vital and will consequently reduce your insurance costs.

Here are some other ways to control costs:

·   Implement a return-to-work policy in which employees work modified duty until they are fully healthy to do their jobs.

• Understand the elements that contribute to your workers’ compensation costs. It is vital that you understand the impact that each brings to your overall pricing. 

• Orient and train your employees on safe practices necessary for their job functions and tasks. 

• Insist that employee claims are reported promptly, as statistics reveal that for every week that a claim goes unreported, the cost can increase as much as 50 percent. • Investigate the cause of injuries and illnesses. While one injury may be behind you, others will take its place unless you do something to reduce the chance of the incident occurring again.

.• Investigate the cause of injuries and illnesses. While one injury may be behind you, others will take its place unless you do something to reduce the chance of the incident occurring again.

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