What Is Workers’ Comp?

If you run a business, you should familiarize yourself with workers’ comp. This is a form of protection to help your workers if they get injured or are unable to perform their duties.

It protects your business from financial burdens, and it also works as a protection for your workers. It can help cover issues such as accidents and paid leave.

So how do you choose a workers’ comp program for your business? Why should you consider workers comp protection for your business?

Here’s what you need to know:

How Workers’ Comp Saves Money

As a business owner, you know that any loss of finances can wreak havoc on your business. It can prevent you from scaling your business and can even cause your business to close.

For example, if your workers get into an accident, you might be expected to pay for their injuries.

Workers’ comp will pay these fees for you. It can also cover your business in any lawsuits you might get embroiled in. It’s one of the most important types of business insurance options your company should consider.

What Workers’ Comp Covers

When shopping around for workers’ comp for small businesses, it’s imperative that you ask about what gets covered.

As a general rule, workers’ comp will cover the following for your workers:

• Lost wages
• Medical expenses and ongoing care costs
• Funeral expenses

Workers’ comp usually doesn’t cover the following:

• Injuries from a fight that the worker instigated
• Intentional injuries that a worker sustains
• Injuries sustained while the worker was intoxicated
• Emotional injuries or trauma

The rules of what workers’ comp does and doesn’t cover also depend on your state. Make sure you research the rules of your state before you sign up for workers’ comp.

If you haven’t yet established your business, you might want to think about which state works best for workers’ comp.

Paying for Workers’ Comp

You pay for a workers’ comp plan, and then the company offering the plan handles the rest.

As an employer, you pay for the workers’ comp as you would any other business insurance. If there’s a cause for your worker to receive a benefit, this gets handled by the plan.

The cost of coverage depends on your specific plan. It also depends on the rules of your state. Make sure you research what benefits you’ll have to cover within your plan.

The cost of coverage also depends on several factors, including:

• The type of work that your workers have to do
• Laws set by the state or city, county, etc.
• The size of your company
• The level of risks at the workplace

Make sure you research the different plans available with your workers’ comp provider. You can speak to their customer service to assess which is the best option for your business.

What Happens If a Worker Gets Injured?

If a worker gets injured on the job, their first step should be to report it. When you onboard new employees, make sure you educate them about how to report an injury. Let them know that your company offers workers’ comp protection as well.

If there’s a job-related illness that your workers are experiencing, this also has to get reported as soon as possible.

After they’ve reported their injury, you can file a workers’ comp claim. This claim should get filed as soon as the worker reports their injury.

Here are the situations for which you should file a workers’ comp claim:

• The injured person is a worker; non-workers aren’t eligible for workers’ comp if they get injured at the workplace
• The worker became ill as a result of their work duties
• The worker gets injured as a result of their work duties
• The worker gets injured at the workplace during work hours

Once filing the claim, make sure that the worker gets the medical attention that they need. You can call an ambulance or arrange to take the worker to the hospital. Make sure you honor the worker’s request to take time off from work. The workers’ comp plan can cover their lost wages.

The required information for filing a claim varies by state. As a general rule, here’s the information you’ll likely need to file the claim:

• Company information, including the policy information
• The worker’s vital statistics
• Details of the injury, including names of witnesses

When you choose your workers’ comp plan, make sure you study the guidelines on how to file a claim.

Why Workers’ Comp Matters

In most states, workers’ comp is required for companies that have at least two employees.

These policies were put in place to help protect workers as well as businesses. The United States is trusted as a great place to do business because of the strong Rule of Law and stability.

You have to put yourself in the position of your worker. Would you want to work at a place where there’s no protection if you get into an accident?

But workers’ comp also helps protect your business. It’s great that there’s business insurance that helps cover the costs of worker protection. This saves your business from going bankrupt over such issues.

There are some types of workers who get exempted from mandatory workers’ comp. These include contractors, temp workers, domestic workers, and volunteers.

Nevertheless, you should make sure to choose a plan that offers maximum protection. You also want to inform your workers about their rights and protection. Make sure you educate your staff on how to file a claim in the case of an accident.

Find Your Workers’ Comp Plan

Now that you know the importance of workers’ comp, you can choose the best plan for your business.

Make sure you take workers’ comp seriously, as it serves as a protection for your workers. You can lose out on talented professionals if you don’t offer workers’ comp.

You can also find yourself in the middle of an ugly lawsuit and unable to cover fees. The lack of workers’ comp can cause major financial strain for your business.

You can also find more great business tips on our website!