No company can ever be as successful without its employees. They are the ones who keep the wheels rolling, which is why every business owner must do whatever is in their power to ensure their workers feel safe and protected all the time.
There are various things that can be done to accomplish that, and one of them is by opting for workers’ compensation insurance, which doesn’t only protect the workforce, but the employers as well.
There are a number of reasons why workers’ comp insurance should be taken into account, however, if you’re not familiar with it, then it’s perfectly understandable why you haven’t considered it yet.
That’s why this informative guide is here. It’s going to inform you about all the relevant information when it comes to this, and it’s up to you to decide if you’ll include it in the workplace safety plan or not.
How Can You Select The Right Policy?
Those who decide to opt for workers’ comp must take several factors into consideration if they want to make a well-informed decision. When it comes to selecting a Workers compensation insurance policy, you shouldn’t only focus on the price. Although that’s an important factor, it surely isn’t the only one.
How come? Well, that’s because if you resort to the cheapest option in order to skimp on costs, you may end up with something that’s going to cost you a lot more in the long run, if by any chance, an accident at the workplace happens.
Therefore, one of the most important things to consider is the needs of your employees, which primarily means that you should take into account all the risks that are involved at the work site, and whether the policy that you’re about to pick is going to provide the right coverage for all those risks.
In these types of situations, you should focus on the crucial factors, such as the sort of tasks that your workers execute regularly, whether there were any incidents at the workplace in the past, and the amount of money you can set aside for the coverage.
When browsing different workers’ comp policies, apart from the price, you should also pay attention to various features and benefits that come with a specific policy.
Occupational Accident Insurance Cannot Replace Workers’ Compensation
There’s a misconception that occupational accident insurance can replace workers’ comp, however, that’s definitely not the case. Even though it is a solid alternative, it most certainly isn’t a substitute.
So what can be said about OAI? Namely, it offers substandard coverage for employers and workers, however, what you need to remember is that there are states that do not think that occupational accident insurance can ever come close to workers’ compensation insurance because it has far more restrictions for coverage compared to the workers’ comp.
Furthermore, if your costs surpass the coverage limits, then your employer will be obligated to cover any additional expenses.
A Lot Of Attorneys Will Gladly Work On Contingency Basis
A vast majority of lawyers who deal with workers’ compensation cases will work on a contingency basis. So what does it mean? It means that you will receive a certain amount of money (percentage) once you are compensated.
What’s going to happen if you lose? Nothing. In these instances, there’ll be no fees. However, what you need to know is that there’ll be some law firms that will charge you a specific fee (that you’ll need to give them from your own pocket) if you do not win the case.
These costs usually apply to expert witness fees, obtaining medical records, medical treatments and examinations, the cost of depositions, court fees, travel costs, etc. Before you select an attorney, it would be recommended to discuss these things so that there are no unpleasant surprises.
State laws are the ones that regulate the advocate’s fees in these sorts of situations. Furthermore, all states have a workers’ compensation board or commission that’s here to determine a specific cap on the lawyer fee. The maximum is normally up to thirty-three percent of the amount of money that an injured individual receives.
Your Employer Must Be Familiar With Any Occupational Illness Or Injury You Have
Although workers’ compensation is here to protect the rights of employees, it doesn’t mean that employers do not have any rights. On the contrary. You, as a worker are obligated to report any occupational illnesses or injuries to your employer within a particular time frame.
Of course, this all depends on the state you live in. For instance, there are states that demand you to report any occupational diseases and injuries within three months tops (from the day an injury/disease occurred).
Moreover, you, as an injured party should file a workers’ compensation lawsuit within three years of the injury. If you miss any of the aforementioned deadlines, there’s a chance you’re not going to receive any compensation for your injuries.
The Price Of The Workers’ Comp
The amount of money you’ll need to pay for this type of insurance depends on the state you run your business. This refers to the benefits as well. Additionally, there are different rates that must be taken into consideration, depending on if the workers covered do high-risk or low-risk work-related tasks.
The fees that must be paid for the insurance are based on the firm’s payroll numbers. Below, you’ll be provided with some examples:
- In Florida, the average is around twenty-six cents per $100 for jobs that are perceived as low-risk, and over nineteen dollars for high-risk jobs
- In California, workers’ comp is around forty cents for each $100 in payroll for low-risk jobs and almost thirty-four dollars for high-risk jobs
Workers’ Compensation Does Not Cover Pain And Suffering
If you want to receive a specific amount of money as compensation for the pain and suffering, then you must file a personal injury claim because workers’ comp is not going to cover it.
Now, that you are familiar with the basics of workers’ compensation insurance, then maybe you should give it a second thought because it’s more than obvious that it’s very beneficial for both employees and employers.