Workers’ compensation insurance is a type of insurance that covers employees for injuries or illnesses that they sustain on the job. It is required by law for virtually all companies and can provide vital financial protection for employees.
A workers’ comp policy also typically includes employer liability, which protects your company if an employee should sue for specific reasons outside of workers’ compensation claims.
How To Select a Company for Your Workers’ Compensation Insurance
When choosing a workers’ compensation insurance provider, there are a few critical factors to consider:
- Coverage. The first thing you need to do is ensure the provider offers the coverage you need. This includes the types of injuries and illnesses covered, as well as the maximum amount of benefits that are payable.
In most states, workers’ compensation insurance covers medical expenses, lost wages, and death benefits for employees who are injured or killed on the job. However, some states have different requirements. It is essential to check with your state’s labor department to find out what the specific requirements are.
In addition to the basic coverage, some providers also offer optional coverages, such as:
- Rehabilitation benefits. These benefits can help employees who have been injured on the job to recover and get back to work.
- Death benefits. These benefits can be paid to the survivors of an employee killed on the job.
- Occupational disease coverage. This can cover employees who develop occupational diseases, such as silicosis or asbestosis.
- Cost. The cost of workers’ compensation insurance varies depending on the size of your business, the industry you are in, and the risks involved in your work. You should get quotes from multiple providers to find the best deal.
You will find that providers who sell workers’ compensation insurance to you directly online, with no brokers or other intermediaries, can typically offer coverage for significantly less than other companies.
When comparing quotes, it is critical to make sure that you are comparing apples to apples, so to speak. Make sure that all of the quotes are for the same coverage limits and exclusions.
- Claims handling. If an employee is injured on the job, you will need to file a workers’ compensation claim with your insurance provider. It is important to choose one that has a good reputation for handling claims efficiently and fairly.
Some things to look for when evaluating a provider’s claims handling include:
– How long does it take to process claims?
– How responsive is the provider to inquiries?
– Are claims handled fairly?
– Are employees treated with respect?
- Financial stability. The insurance provider should be financially stable so that they can pay out claims if necessary. You can learn about the provider’s credit rating through various services (like AM Best) before making a decision.
- Customer service. You should also consider how the provider interacts with its customers. Some things to look for when evaluating a provider’s customer service include:
– How easy is it to reach someone by phone?
– How long do you have to wait on hold?
– Are the representatives knowledgeable and helpful?
– Are they willing to go the extra mile to help you?
Other Best Practices for Finding the Right Workers’ Comp Provider
Here are some additional tips for choosing the best workers’ compensation insurance provider:
- Get references from other businesses that use the same provider.
- Read your workers’ comp policy carefully before you sign it.
- Make sure you understand the coverage limits and exclusions.
By following these tips, you can choose the best workers’ compensation insurance provider for your business.
Protect Your Employees and Your Business With Workers’ Compensation Insurance
You have been notified that an employee fell off a ladder and suffered a badly broken leg. Once they are getting the medical attention they need, both you and the worker can relax. The workers’ compensation insurance claim that is filed will protect the employee financially from the repercussions of their accident. That frees them to focus on recovering and returning to work, which benefits them and your company.
Workers’ compensation insurance is a vital component of every company’s insurance portfolio. It is also required by law in most states for nearly any company with employees. Choosing the right provider ensures that your employees and company won’t incur significant expenses if someone gets hurt, becomes ill, or dies due to an on-the-job incident or exposure.
With appropriate coverage in place, you and your workers can stay focused on helping the business thrive.
