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Workers’ Compensation Insurance: Protecting Your Team and Your Business

Worker’s compensation insurance is one of the most important benefits a business can offer its employees. It gives your staff members peace of mind as they know they’re covered if they get hurt while on the job or get sick as a result of the work they’re doing for your company. 

What Does it Cover? 

Worker’s compensation insurance covers all on-the-job injuries. It also covers any illness your worker contracts as a direct result of working for your company. This form of insurance covers medical bills related to the accident or illness, which includes not only the cost of immediate care but also long-term care and therapy. A worker also receives the equivalent of sick pay while on medical leave and may receive up to two-thirds of a full salary if he or she is no longer able to work. If a worker dies as a result of on-the-job injury or an illness incurred from working at a company, worker’s compensation insurance will pay benefits to the worker’s immediate family. 

Part-time employees may also be covered by your worker’s compensation insurance policy. Freelancers who work as part of your regular business operations would likewise be covered unless they have their own policy. If you hire temporary workers from a temp agency, the agency may have its own worker’s compensation policy for its employees. 

Why It’s Required 

The concept of workers being provided compensation for on-the-job injuries has been around since ancient times. It was enshrined in Hammurabi’s code almost 4,000 years ago, Ancient Greece, China, and Rome all had laws requiring that employers compensate workers who incurred on-the-job injuries. These laws became popular in the United States in the early 1900s as literature exposed the dangers people faced working dangerous jobs and the near-impossibility of obtaining compensation from businesses responsible for the injuries. Ten states passed worker’s compensation laws in 1911 and now, all states except for Texas require businesses to take out worker’s compensation insurance. Most states require companies to take out this insurance even if they only have one employee. However, a number of states, such as Florida, Arkansas, Georgia, New Mexico, and North Carolina, only require this form of insurance if you have over three, four, or five employees. 

The consequences for non-compliance with worker’s compensation insurance laws likewise vary depending on your business’s geographic location. All states charge fines; amounts range from $1,000 to $100,000. In some states, such as California and Pennsylvania, you can face jail time if you intentionally fail to provide your workers with adequate worker’s compensation insurance coverage. 

How to Manage Costs While Ensuring Adequate Coverage 

As a conscientious business owner, you want to make sure you have a worker’s compensation insurance policy in line with state requirements. At the same time, you need to turn a profit on your work, which means you’ll want to do what you can to keep costs as low as possible. Following are some tried-and-proven ways to manage costs while providing adequate insurance for all your employees. 

Creating a safety program in line with OSHA’s requirements for your industry is the first step in keeping insurance costs low. You can even get free advice on how to do this from OSHA’s On-site Consultation Program. Lowering the risk of injury lowers the number of potential claims per year. This means you won’t have to worry about rising premiums as a result of multiple claims against your company. 

It’s also smart to create a back-to-work program for injured employees and employees who have gotten sick as a result of working at your business. You may need to make adjustments such as allowing employees to work from home or lightening job responsibilities. Even so, the end result is a win-win situation for all involved. Employees who are able to get back to work benefit from earning a full paycheck. Your business benefits from being able to close a claim and thus keep your insurance costs low. 

Another effective way to keep costs low is to shop around for an insurance provider that offers the best terms and conditions at the lowest possible cost. Grand Mutual Insurance Services is a good option to consider if you’re looking for affordable, comprehensive coverage. We offer multiple policies, which allows you to bundle various policies you need to keep costs low. We also tailor policies to meet your exact needs, so you only pay for the coverage you need at any given time. What’s more, our team of experts is familiar with laws in all 50 states. We work with you to ensure your insurance policy is in line with state law. Get in touch with us at your convenience to find out more about our worker’s compensation insurance policies and other insurance options, or to start the process of taking out a policy that meets your business’s needs and budget. 

Have questions? Our team at GMIS is here to help.

At Grand Mutual Insurance Services, we are committed to providing you with the most up to date information and guidance on the insurance market in California. Your peace of mind is our top priority. We understand the importance of reliable insurance protection and are here to support you through these challenging times.

As always, if you have any questions or concerns, please do not hesitate to reach out to our team. We are always happy to hear from you and assist you in any way we can.

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