There were 2.8 million injuries to employees in 2022 that led to a workers’ compensation claim, the most common being overexertion, contact with equipment and objects, and slip and falls. Around 10,000 people die in workplace accidents every year. Motor vehicle accidents are the most common cause of work-related deaths, followed by falls, non-highway vehicle accidents, blows, and electrocutions.
As an entrepreneur and small business owner, you want to ensure that your business is properly protected and that your employees are taken care of in the event of a workplace injury. Understanding workers’ compensation insurance is crucial.
Ryan Zavodnick, one of the experienced worker’s compensation lawyers in Philadelphia, shares what every entrepreneur needs to know about workers’ comp:
What is Workers’ Compensation Insurance?
Around 135 million workers are covered by workers’ compensation. Workers’ compensation insurance provides medical care and income replacement to employees injured or ill due to their job duties. It covers lost wages, medical expenses, rehabilitation, and death benefits. Workers’ comp insurance protects both the employee and the employer – the employee gets coverage for work-related injury/illness, and the employer is protected from litigation.
Who Needs Workers’ Compensation Insurance?
In most states, businesses with employees are legally required to have workers’ comp insurance. This includes full-time, part-time, seasonal workers, and, in some cases, independent contractors. The requirements vary by state regarding business size and type of employee coverage. As an entrepreneur, you must understand your state’s specific workers’ comp laws. Failure to carry required workers’ comp insurance can result in hefty fines.
If you currently work as an employee, know that workers’ compensation lawyers can help you fight a claim and get the benefits you’re entitled to.
Covered Injuries and Illnesses in Workers’ Compensation Insurance
A work-related injury or illness that causes an employee to miss work, require medical treatment or result in death should be covered under workers’ comp. This includes injuries during normal work activities or while engaging in company-related events. Illnesses like work-related stress and occupational diseases can also be covered.
Workers’ Compensation Insurance Benefits for Employees
There are several benefits available to employees who suffer a work-related injury or illness:
- Medical care, including doctor visits, hospital services, physical therapy, prescriptions
- Temporary disability payments for wages lost while recovering
- Payments for permanent impairment or disability
- Vocational rehabilitation for retraining if the employee cannot return to their job
- Death benefits for surviving spouse and dependents
Managing Workers’ Comp Claims
The average workers’ comp claim is around $41,000, which includes $22k in medical expenses. As a business owner, you must have processes to handle workers’ comp claims properly. This includes prompt reporting, carefully reviewing claims, communicating with injured workers, light duty work programs, and working with your insurance provider. Successfully managing claims ensures workers get the benefits they deserve while controlling costs.
Workers’ Comp Insurance Rates
Rates are influenced by factors like your industry risk class, claims history, payroll, employee type, and the insurance provider. Strategies like employee safety programs can help lower your rates. Shop around for the most competitive pricing from reputable insurers.
Maintaining the proper workers’ compensation insurance provides important protection for both your business and your employees. Understanding the requirements, benefits, and claims management processes is key for entrepreneurs. With the right coverage, you can avoid costly litigation and keep your employees covered.