Are you considering investing in workers comp insurance but want to learn more details first? Here are 7 things you need to know.
Workers comp insurance matters. Millions of American workers are covered by it, and it is essential if you want to start a business, sometimes legally.
The vast majority of employees have it for two reasons. The first is legal, and the second is practical. Simply put: having insurance can save your company money and help your business run more smoothly.
Here are a few facts to know about getting insurance.
A lot of people think that workers comp insurance is optional. But the fact remains, you need to get insurance in most states.
Most states have mandatory workers comp insurance. Whether you’re a large or a small business, this means you need to take your company’s responsibility to its employees seriously.
Even small businesses can face serious penalties for failing to provide insurance to their employees. For instance, a business in Pennsylvania with over five employees that does not provide workers comp insurance can face penalties, fines and even the possibility of probation.
There’s A Lot Less Fraud Than You Think
Within the commercial insurance industry, it’s common to worry about fraud. Part of this probably comes from the media, which is filled to the brim with images of lazy employees faking a wound to collect their benefits. But while fraud does happen, it’s not as common as people think.
Only one to two percent of claims are actually fraudulent. While this is more than nothing, it’s certainly a lot less common than the media would like people to believe.
Having this information is important for employers wondering whether or not they should trust their injured employees.
Workers Can Be Paid For Something That’s Their Fault
A lot of people think workers comp insurance will only cover injuries that are entirely the fault of an employer. But the reality is a little bit more complicated than that.
In workers comp cases, an employee does not need to prove that their employer was entirely at fault. Instead, employees are covered as long as the employer was negligent in some way.
For instance, let’s say an employee was running on a slippery floor. If the employer was negligent and didn’t put up a “wet floor” sign, it does not matter whether or not the employee should have been running in the first place.
This is important to know. When deciding whether or not to avoid the potential for injury in the workplace, an employer shouldn’t think “only an idiot would get injured here.”
Instead, she should think “would an idiot get injured here?”
Workers Comp Insurance Is For Businesses Of All Sizes
A lot of people think of workers comp as something that only large businesses need. And while there are some states where that is true, small businesses are usually required to carry workers comp insurance.
Even in states where it isn’t the law, a small business should offer this type of insurance. Paying for the injury expenses of an employee out-of-pocket can be particularly harmful to a small business.
You can save thousands of dollars by having insurance. And if you don’t use it, you’ll be fortunate. Make sure you take advantage of the fact that there are good insurance options available to a wide variety of businesses.
Remember that protecting yourself from harmful claims isn’t just for the big guys.
Injuries Outside Of The Workplace Can Require Payment
Another common misconception about workers comp is that employees are only covered if they are injured in the workplace. For instance, if a person is asked to move a piece of furniture for their company and has a hernia, they can be paid.
The reality is a little bit more complicated. In most states, employees are covered if they are injured performing the duties of their job. This does not only include workplace injuries.
For example, let’s say you have a food company that offers delivery. If a driver is injured in a car crash and was not driving recklessly, they would be covered. If that same driver had gotten out of the car and been attacked by a dog on a customer’s property, they would also be covered.
If you have employees that perform essential duties outside of the workplace, you need good workers comp insurance. Because while you can do everything you can to provide a safe work environment, you can’t change the state of the world.
Insurance Prevents Lawsuits
Lawsuits can hurt companies. Being sued for the injuries of an employee can result in huge losses and awful PR. However, if an employee is injured and feels they were not properly compensated, they will probably take legal action.
Getting good insurance is a great way to avoid having to deal with these harmful suits. It makes sure that everybody is as happy as they can be in these instances.
And, with the low number of fraudulent claims we mentioned before, it means employers can rest easy while employees receive their payouts.
Your Premium Depends On Your Safety
There are ways to measure how safe a workplace is. Usually, this comes from taking a look at past claims.
A business with more claims against it is going to have a higher insurance premium. It’s similar to how a driver’s license with more accidents will have a higher car insurance premium.
Before you buy insurance, make sure your employees are as safe as they can be. You will be rewarded for it when it’s time to make a purchase.
If you’re looking for high-quality insurance we can help. We provide life, personal, and commercial workers comp insurance to businesses everywhere.
Our priority is making sure that you get a good deal while your employees stay safe. Contact us to make it happen.