Workers Comp Insurance Back to Commercial/Business
If a job-related accident injures, disables, or kills an employee — regardless of who was at fault — Workers Compensation will compensate them, or their heirs, for their loss. This coverage is a form of “social insurance” designed to provide benefits to injured workers as quickly as possible, without drawn-out litigation.
Workers Comp covers employees at your place of business, during business-related travel (for example, a salesperson on the road), or in activities that promote your business (such as playing for the company softball team). Workers' comp insurance provides six basic benefits: medical care, temporary disability benefits, permanent disability benefits, or vocational rehabilitation or supplemental job displacement benefits and death benefits.
A related policy (Employers Liability) extends coverage to third parties, such as visitors or customers, who are injured on your property, or by you or your employees away from the premises.
Workers Comp Benefits
Workers Compensation benefits will reimburse employees who become ill, injured, or disabled on the job for:
- Medical Expenses - with no time or dollar limit on an “open claims” basis. Loss of Income (after a waiting period) — provides the employee with a percentage of their income, up to a specified amount, for disability (permanent or temporary, partial or total).
- Death Benefit - pays a specific amount, usually a multiple of the employee's weekly salary. Rehabilitation — pays for retraining an injured employee for another position (for example, teaching an assembly-line worker to do a desk job).
- Second Injury Fund - compensates employees whose earlier injuries make them more susceptible to another accident.
As the business owner/employer, you'll pay Workers Comp premiums based on a rated percentage of your payroll. Your rating will change once a year, depending on a combination of: (1) the loss experience of your business (“experience rating”) — the higher your losses, the higher your premiums; and (2) your loss experience compared with that of other employers in the same business (“experience modification”). This rating system gives businesses a powerful financial incentive to curb work-based risk exposures through comprehensive safety regulations and programs.