Accidents cause injuries and, tragically, even death. Everyone can understand that sobering concept. However, the fact that accidents happen more often than you would like to think is a no-brainer for any business. The issue of workers’ compensation, therefore, is notably at the forefront of business insurance needs.
While most know the general gist of coverage, there are numerous details surrounding it that many may not realize. Below, insurance professionals provide you with information on related policies that go beyond the usual.
• Workers’ compensation wasn’t always around. The idea of companies purchasing this type of coverage only became familiar when individual states in the United States of America began implementing it as a business requirement for industries in 1911.
• Generally speaking, this insurance offset is now mandatory for all businesses in the US.
• Workers’ compensation was created so that companies can protect themselves and their workers from the financial impact of a workplace accident and its negative consequences.
• Regardless of where the fault lies for a work-related injury, this type of insurance covers damages. It does not matter if it is due to dangerous conditions in the workplace or employee negligence.
• Workers’ compensation benefits are an automatic part of coverage that begins the moment an employee begins working at any business.
• Fraudulent workers’ compensation claims affect business owners, other employees, and the entire insurance industry. If caught, the scammers can face more than a year in prison, along with other penalties.
• It is best for the company to maintain a safe workplace so that accidents and their subsequent claims processes are prevented in the first place.
• Contrary to popular belief, workers’ compensation is not always set at a standard premium. The associated costs are established after an analysis of the individual organization’s payroll, site location, and business class, as well as something called an experience rating. The experience rating assesses the incidence frequency and severity of related insurance claims to determine the price of the individual workers’ compensation premium.
• If a company purchases its workers’ compensation from an experienced independent insurance agency that has a good relationship with many of the major insurance companies, there is a better chance of getting a better policy quote. This is due to the discounts that the related airline will offer to its partner agency that transfers the savings to its customers.