Many insurance companies benefit your business and help your organization in the long run. While some insurance companies may try to upsell various add-ons or features into your insurance plan, as a business, you must be a little careful other than workers compensation insurance.
Such types of insurance will add a layer of protection and cover you in case of mishaps.
These insurances allow all the employees of an organization who suffer from a workplace injury or disease to access financial support for various things.
Herein, the employees can seek support to cover medical expenses and loss in wages, and depending upon the insurance plan, they may even seek death benefits.
As a business, you must invest in workers’ insurance as it helps you protect your employees and makes you a better employee in the long run.
Not many people know in detail about workman’s compensation, so here are some questions that you might have about this type of insurance.
- What are the legal requirements for such type of insurance?
Besides Texas, workers’ insurance is mandatory in every state in the United States.
However, each state regulates its own on its level based on its requirements and penalties. In most states, whether a business needs workers’ insurance depends on the number of employees; in most cases, just having one employee makes it necessary for the business to opt for such insurance.
- Are there any penalties for not carrying such insurance?
In most states, there is a penalty for not purchasing workers’ insurance, and the type of punishment or penalty varies from state to state.
For instance, in Maryland, the employees may face a penalty of a minimum of $10,000 or a year of prison time and, in some cases, maybe even both.
On the other hand, in Illinois, the employer might have to pay $500 for each day of non-compliance.
- How many employees do you need to have this insurance?
Even if you have only one employee in Maryland, you may have to invest inworkers compensationinsurance according to the law, with a few exceptions.
But on the other hand, sole proprietors may not need such insurance depending on the other state.
- What does it cover?
The workers’ compensation claims one can seek varies from state to state, and in many cases, it covers compensation for medical coverage, loss of wages, and disabilities.
If the employee has suffered from an injury and cannot attend the workshop, they are not classified as permanently disabled. They may be eligible for temporary disability benefits.
Moreover, in some cases, it could also be classified as a permanent disability if the doctors deem it so. In such a situation, they are entitled to disability benefits.
- What injuries does it cover?
The type of injuries that are covered in the benefits may depend upon the state where you are in.
Knowing what typically qualifies as compensation will help you file for better claims.
Typically, injuries are caused at the workplace but are not a result of intentional self-harm. Moreover, injuries caused under the influence of alcohol or drugs at the workplace are not included in insurance.
In addition, long-term occupational injuries also qualify, along with injuries that happen while the worker is performing tasks under their job description.
These are a few of the most commonly asked questions about workers’ insurance, and knowing such answers will help you make a better decision.