Regardless of how many safety precautions are in place, workplace injuries and illnesses are more common than you think. Insurance helps keep employers and their businesses safe in the event of workers comp claims, even though costs are still likely to go up due to an incident.
Worker’s compensation insurance helps provide for the employee suffering from either illness or injury. It pays for medical care and can provide some compensation if the employee cannot work for a period of time. Depending on which state the business your business is in, workers’ compensation laws may vary. However, most employers must have this coverage immediately after adding someone to their payroll.
Larger companies are able to handle workers’ comp claims better than smaller companies. This is because they have the financial resources to deal with the losses inherent in these types of claims. In addition, the bigger the company, the more they typically offer in the way of training programs to improve safety and awareness among staff. It is important to note that even someone working for themselves, like an independent contractor, should still consider workers’ compensation. If something happens that renders them unable to do their job; they would need help with their medical care and lost wages.
What Is the Process for Filing a Work Comp Claim?
It is critical to file a workers’ compensation claim as soon as you are made aware of an injury Report a workplace accident or sickness if any of the following conditions exist:
- The wounded individual works for your company.
- Your employee fell ill as a result of their job.
- The employee was injured as a result of job-related responsibilities.
- If an employee is injured on the job,
If an employee is hurt on the job, make sure they receive medical attention immediately. Call an ambulance or take them to the emergency room if necessary. If their recovery necessitates time away from work, grant their request.
You’ll need to gather some information before making a claim. The specific information you’ll need varies by state. However, when submitting workers’ comp claims, an employer and employee should include the following general information:
- You will need to provide information about the company, such as the account number, location, and policy number.
- Provide the following employee information: name, date of birth, address, phone number, Social Security number, age, gender, etc.
- Document and provide detailed information on the incident or illness: date of the incident, type of injury, body part injured, the cause of injury, estimated number of days the employee will lose, anticipated return date, any witnesses, etc.
Once you have gathered all of the essential information, you are ready to file a claim with your insurance carrier as quickly as possible. This procedure may change based on the state in which your company operates. For example, states may establish a time limit for business owners to notify their workers’ compensation insurance carrier.
How Much Are Insurance Premiums?
There are a variety of factors that are considered when determining how much your premiums will be. Of course, the first consideration is what type of work you do. However, how many employees you have and how many claims have been made over the past several years are also factors.
If you file a workers’ comp claim, you may not have to pay more premiums. It all depends on how much medical care the employee needs and what type of injury or illness it was. However, if you have multiple claims, you will likely see an increase in your workers’ compensation premiums.
There is also a scale used to determine whether or not to raise your premiums. It is called an EMR, or experience modification rate. This looks at your claims compared to other businesses that do the same thing that you do. For example, if your rating is around 1.0, your premiums are not likely to be adjusted. However, if it is higher than that, they could rise.
You can bring down your premiums by providing training for your employees and implementing different safety standards at your business.
What Else Will You Have to Pay?
When an employee is hurt on the job, workers’ compensation can pay for some of their lost income. However, you could still be liable for anything that workers’ compensation does not pay. To reduce the financial impact of this liability, look into getting the employee back on the job whenever it is feasible, even if you have to cut back on their job responsibilities. Doing so could help with your premiums because insurance will not have to pay lost wages for as long.
Keep in mind that you can have other financial impacts as well. You may have to hire someone to do the employee’s job while they are out. In addition, you could be subject to an investigation over the incident, meaning that all operations stop. It is essential to recognize that a workers’ comp claim can be challenging for a business.
What About Administrative Fees?
Workers’ compensation claims are often an involved process. The insurance company needs details on what happened. The business is responsible for providing that information and other details regarding the employee’s medical care and lost wages. Suppose, during the course of providing all the necessary information, it is found that the business has faulty equipment. In that case, you are responsible for either fixing that equipment or getting a replacement.
What If a Work Comp Claim Goes to Court?
There are times when an employer believes that an employee has made a false claim. If that happens to you, you may want to pursue your work comp claims in court. Be aware, though, that legal fees are costly. There are no guarantees that you will win, and you may ultimately pay more to try and prove your case than if you’d covered the employee’s lost wages. However, it is unusual to see a workers’ compensation claim go to court.
How Do Work Comp Claims Affect My Business?
There are also numerous variables that play into how your reputation will be affected by a workers’ comp claims. In part, it depends on how bad the accident was and how much coverage it gets. For example, are posts made about it on social media? Was there a news story about the incident? All of these things impact whether people will want to work with you or for you in the future.
It is always best to stop accidents before they happen. Regularly inspect and repair equipment. Provide training for your employees. Put someone in charge of ensuring all safety guidelines are being followed. The more you do now, the better you will benefit.
Protecting Your Business
Workers’ compensation insurance is an important part of any business. Claims are common, and your insurance premiums are based on several factors. Protect your employees and your business with work comp coverage. For more information about workers’ comp claims and help in determining the best coverage, contact Missouri Work Comp Specialists today. We would be happy to help you get the coverage you need to protect your business.