Workers Compensation is a type of insurance that employers purchase for themselves and their employees that protects both parties involved in a working relationship. In this employer-employee relationship, employees exchange their ability to sue their employer in the event of an injury for access to compensation and benefits.
Compensation and benefits come in various forms including wage replacement, medical treatment, rehabilitation services and disability leave. Wage replacement covers any wages lost by employees who must take time off to recover from an injury. If they seek out medical treatment, then they will be covered for the costs associated. The same is true for rehabilitation and, under more serious circumstances, disability leave.
Workers Compensation Insurance is mandatory for companies with a minimum number of employees in 49 of 50 states, but the minimum number changes by state. You’re almost always required to have Workers Compensation if you employ 3-4 people, but it’s critical to check your state’s laws as you may need Workers Comp coverage even if you’re a sole proprietor. The only state that does not broadly require Workers Compensation Insurance is Texas; however it is required under certain circumstances.
Regardless of the industry and the type of work being carried out, no one is truly immune to work-related injuries. Given this, it is important for all business owners to invest in Workers Compensation to ensure that even if a freak accident occurs, both themselves and the injured party are covered. Without Workers Compensation, even the safest of workplaces are subject to potentially disastrous financial and reputational outcomes. Workers Compensation provides all business owners with peace of mind in knowing that their employees and their business are covered in the event of injury.
Generally, an employer pays a premium to either a state-run insurance program or insurance company for Workers Compensation Insurance. A premium is a percentage of a total amount of coverage which would be available for employees who hurt themselves on the job and need to take time off work or seek out medical treatment.
State-run insurance programs are administered by an individual state’s department of commerce, industrial relations or labor and are often chosen by employers with less than ten employees or those working in industries where injuries in the workplace are uncommon. For employers that have opted to be a part of a state-run insurance program, one of the departments mentioned above will pay out Workers Compensation to employees in the event of an injury. In this way, these departments take on a similar role to insurance companies in which the employer pays a premium, and a third party pays out compensation when an injury occurs.
State-run insurance programs have often been created with the intention of keeping the costs of private insurance down by creating competition. Therefore, an employer with fewer than ten employees may choose a state-run insurance program as they do not need extensive coverage. If an employer has been a part of several incidents or is in a high-risk industry and private insurers will no longer provide them with coverage for an affordable price, enrolling in a state-run insurance program may prove to be a helpful option.
State-run insurance programs have often been created with the intention of keeping the costs of private insurance down by creating competition. Therefore, an employer with fewer than ten employees may choose a state-run insurance program as they do not need extensive coverage. In the event that an employer has been a part of several incidents or is in a high risk industry and private insurers will no longer provide them with coverage for an affordable price, enrolling in a state-run insurance program may prove to be a helpful option.
Similar to state-run insurance programs, employers will often pay a premium to an insurance company to provide Workers Compensation Insurance to their employees. An employer may choose a private insurance company over a state-run insurance program as its services may be more comprehensive and offer greater coverage. When an employer pays a premium to an insurance company, they can protect themselves by ensuring that employees are not able to sue them in the event of personal injury. Additionally, employees can access certain benefits and compensation.
In most states, employers have the option to self-insure. However, these employers must prove that they are a large enough business that they have the resources to be able to provide significant coverage for their employees. A business that is able to provide significant coverage to employees is one that can cover them with Workers Compensation Liability. States often require these large companies to provide evidence to support the claim that they are following proper work procedures and that employees are able to access all the benefits of Workers Compensation.
In many cases, a self-insured company will use a third-party administrator to take care of Workers Compensation claims. In doing so, a self-insured business relays all the tasks involved in dealing with a claim to the third party while simultaneously paying out any amount owed to beneficiaries. Any company that chooses to be self-insured should consider the benefits of hiring an attorney. An attorney can assist a company in ensuring that they are following proper procedures for Workers Compensation Insurance.
In many industries, people are required to carry out repetitive tasks to finish their work. These repetitive tasks range from typing on the computer to folding laundry. If you are carrying out repetitive tasks on a daily basis, you may develop Carpal Tunnel Syndrome or a Repetitive Motion Injury such as Bursitis or Tendinitis. In addition to hand movements, this syndrome can also be the result of Thyroid Disease, Diabetes or even pregnancy. An injury can affect a worker’s ability to perform their job. If this is the case, they may need to take time off of work to recover.
A significant portion of the workforce uses computers to carry out their work on a daily basis. Given this reliance on computers, it is likely that more and more people will develop Carpal Tunnel Syndrome. Both typing and clicking require repetitive use of the fingers to operate a computer. Not only do people use computers in their professional life but also in their personal lives alongside smartphones.
In many manufacturing industries, laborers work to produce products on assembly lines, often performing one task repeatedly over the course of a single workday. If this is the case, whichever parts of the body are being used in repetition may be subject to a Repetitive Motion Injury. Without Workers Compensation, those affected by these injuries may find themselves in dire circumstances and wish to file a claim against their employer.
If you are a business owner who has employees that are carrying out repetitive tasks, investing in Workers Compensation is important. Workers Compensation ensures that if an employee develops Carpal Tunnel Syndrome or a Repetitive Motion Injury, that they will be able to recover lost wages and access medical treatment. This insurance also ensures that the employer is not held liable for injuries suffered by their employees. An employee may take time off to recover and come back to work having access to the benefits of Workers Compensation. Without this insurance, an employer can be both liable for injuries and also lose employees that may have otherwise stayed with their company after recovering.