Workers compensation, often referred to as workers comp, is insurance that provides wage and medical benefits to individuals that get injured or become sick at work. Workers comp is mandated coverage by each state. Although, wage and medical benefits will vary from state to state.
Typically, workers compensation insurance is considered a social insurance due to it relying on social contact between labor and management. The business owner is protected from civil law suits by their employees who are injured while working. Workers compensation insurance is purchased by the employer and underwritten by an insurance company.
Workers comp insurance is a type of business insurance designed to provide protection for employees who may be injured while working or suffer an illness. Workers compensation insurance helps to pay for medical expenses and wages for any lost time on the job.
Beacon Business Insurance specializes in workers compensation insurance. If you’re in California and would like to get a fast free quote, please give us a call at 916 273 8391.
The 3 main ways workers comp insurance coverage protects your business
- Employee Illness. If an employee becomes ill while at work, workers compensation insurance can help cover medical bills and wages due to lost time at work.
- Injured employee. If an employee is injured on the job, workers comp insurance can help to pay for any medical bills and wages due to lost time.
- Protects the business from lawsuits. Workers compensation insurance can protect the business owner from lawsuits. It also keeps your business compliant with state regulations
What determines the cost of workers compensation insurance?
Typically, similar businesses in each individual state that show comparable workplace injury patterns and fees are put into a group of classes. The past 5 years of loss costs for business types within a particular class help determine rates. It provides an equitable system where rates are changed with the actual loss data from a certain class of businesses. There are also economic factors for each individual state added to this information to calculate a rate for each business class.
Experience rating will allow modifications of the class rates based off loss history of a particular business. The great thing about this is it allows a business owner to have a little more control over the cost of their workers comp insurance premium. A key note is businesses that are safe are usually rewarded with low rates, and unsafe businesses usually have to deal with higher rates.
Is it required to carry workers comp insurance?
Most states require businesses with employees that are not direct owners of the business to carry workers compensation insurance.
If a business happens to fail to provide workers comp insurance coverage can face hefty penalties. Some of the repercussions can include fines, possible imprisonment, payments for claims out of pocket, all the way up to not being able to do business in a particular state.
Workers comp insurance claims
If you’re wondering how workers compensation claims work. First the person injured must visit a healthcare professional and obtain a medical report that will support the claim. From here employees will want to file with the insurance company. This will include all state mandated paperwork and forms. The employee will have to go through an approval process and once approved will receive their compensation payments.
What do I have to do to get workers compensation insurance?
With Beacon Business Insurance getting workers compensation insurance is easy. All you have to do is give us a call. One of our workers compensation experts will walk you through everything you need to know and get you a quote that fits the needs of your company. Give us a call today, agents are standing by to help you get great rates on workers comp coverage! 916 273 8391