Worker’s Compensation Insurance
We Offer Workman’s Compensation Insurance for Commercial Liability Coverage
Employers have a legal responsibility to their employees to make the workplace safe. Unfortunately, accidents happen even when every reasonable safety measure has been taken. Workers Compensation insurance is a form of liability or casualty insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment. Workers compensation insurance can also cover work-related illnesses. Worker’s Compensation insurance is offered in exchange for the employee’s mandatory relinquishment of his or her right to sue the employer for negligence etc.
When businesses purchase workers’ compensation insurance, the policy assumes the employer’s statutory obligation to pay medical, indemnity and death benefits under the law. Insurance premiums reflect the businesses potential liability for claims based on individual experience, wages paid to employees and the industry in which a business operates.
Worker’s Compensation Requirements
In most states, workers compensation insurance is mandated by law and is administered on a state by state basis. In such situations, a state governing board oversees varying public and private combinations of workers compensation systems. Failure to carry workers’ comp insurance can leave a business vulnerable not only to paying these benefits out of pocket, but also to paying penalties levied by the states.
Some states and territories take this mandate a step further by requiring employers to get their workers compensation coverage exclusively through state-operated funds. If your business operates in North Dakota, Ohio, Washington, West Virginia, Wyoming, Puerto Rico or the U.S. Virgin Islands, you’ll need to obtain workers compensation insurance from the specified government-run agency. Businesses within these jurisdictions are forbidden from obtaining private workers compensation insurance. Thus, these government-mandated agencies are often called “monopoly state funds.”
Texas is the notable exception and does not require most private employers to any carry workers’ compensation insurance. In some states, small businesses with fewer than three to five employees may not be required to carry workers compensation insurance. It’s also important to note that most states will treat an uninsured contractor or subcontractor as your employee if he or she is injured while doing work for your company. In today’s litigious times you may be taking a huge risk by remaining uninsured. Workers compensation insurance can cover:
- Coverage for employees who are injured while working in states outside those where your business normally operates.
- Coverage for various types of injuries and illnesses.
- Coverage for funeral expenses and financial support to dependents.
- Reimbursement percentages for lost wages.
The cost of workers’ compensation benefits is based on the gross payroll and the number and severity of illnesses and injuries that type of employer experiences, and the employee’s occupation. A number of factors come together to determine your rates, including how many claims your employees have previously filed while employed by your business and the severity of those claims.
Worker’s Compensation Rates
Worker’s compensation rates will also depend on how hazardous your employees’ job duties are. Employees in riskier work environments will have higher insurance premiums than employees who do not perform physically challenging or otherwise dangerous work. Specifically, workers compensation insurance rates are determined as a percentage of each employee’s wages. For workers who do not perform dangerous tasks, the percentage businesses are responsible to pay is low: likely 0.25-1 percent of wages. However, for workers who are at a greater risk of injury or illness, employers or businesses will likely pay 10-15 percent of the employee’s wages.
It is important to note that workers’ compensation should not be confused with disability insurance or unemployment payments. Worker’s compensation insurance only pays workers who are injured on the job, while disability insurance pays out regardless of when or where the insured is injured or disabled. Unlike unemployment income or disability benefits, workers’ compensation is always tax-free.
Higginbotham / CGIS: Your Trusted Source for Worker’s Compensation Insurance
At GGIS we are experts at helping to create the perfect workers compensation insurance policy for your business. We’ll analyze your needs and risks alongside your budget and determine the right combination of coverage’s for you. We provide your business with easy-to-understand, cost-effective environmental insurance solutions customized to reflect both your business needs and industry standards.
Our goal is to protect our client’s assets and shareholder value. Our risk management and loss mitigation services complement our clients on a local, national and international level. We’re here to help protect your business. Contact us today for more information about environmental and pollution liability insurance coverage.
Call us today at 281-816-4947 for your FREE Worker’s Compensation Insurance Risk Analysis