Your company’s workers’ compensation policy protects against lawsuits filed by injured employees. The trade-off is the cost of these policies eats into your profits. Every workers’ compensation policy is slightly different, and it’s important to know what it does and doesn’t cover.
Your Workers’ Compensation Policy – Are You Getting the Best Deal?
Essentially, workers’ compensation covers injured or ill employees in job-related cases. These policies pay for:
- Ongoing treatments
- A percentage of lost wages
- Disability allowance
- Funeral expenses
Workers’ compensation insurance will not pay these costs for injuries or illnesses if they are not work-related. State laws vary when it comes to workers’ compensation, but all businesses with more than a certain number of employees (usually five) must have this insurance and keep it current. It comes with a significant level of protection – injured or ill employees are in most cases barred from filing a personal injury lawsuit against the company but can expect medical care and a certain percentage of lost income.
Workers’ Compensation Fraud – Should You Be Worried?
Unfortunately, workers’ comp systems are also vulnerable to fraudulent claims. An estimated $30 billion in fraud occurs each year, but most workers’ compensation claims are legitimate. A claim submitted and paid has an impact, increasing the cost of premiums. It makes sense to carefully evaluate any potential workers’ compensation claim and ensure that you are not a victim of insurance fraud if you doubt the validity of a claim. If you do, you need to notify your insurance company of your problems so they can look into it. As an employer, you have the right to contest a claim according to the processes required in your country.
Steps to choosing the best coverage for your business
Business owners in most states will have two options for purchasing workers’ comp insurance: a state fund or a private insurance company. A few states offer only a state fund. The cost of this insurance is generally a large chunk of the profit, so it makes sense to shop around. Meet with a local business insurance agent to get multiple quotes before committing. The issues to evaluate in a decision include:
- Your state’s coverage requirements
- Your industry requirements
- Your annual payroll
- History of workers’ compensation claims
- The cost of premiums
Reduce Workers’ Comp Costs – Your Options.
To make your company’s premiums more affordable, including shopping around for a better deal with the help of a local workers’ compensation insurance agent who has access to the latest deals, which can change from year to year. Essentially, the fewer claims, the lower the premiums. It is in your company’s interest to implement a tailored workplace safety program with regular seminars and workshops for your employees. Fewer claims mean lower premiums.
Benefits: What does your company offer?
The labor market has changed, with a low national unemployment rate. The best employees look at several questions when applying for a job, including the benefits package you offer. In workers’ compensation, how healthcare is provided can vary. Some employers require injured workers to go to a specific health care provider or clinic, while others allow them to see their own doctor. When planning your employment insurance, consider it as part of the benefits package you offer your employees and that the best employees in the current labor market offer many job offers – make yours among the best.