Did you know that by law, it is required that every business owner in forty nine of the fifty states in America provide its staff with Workers Compensation Insurance? It is important not only for the employees, but also for the company to provide Workers Compensation Insurance.
Most employers cannot afford the out of pocket expenses following a work-related injury or illness. Workers Compensation covers the cost of compensation for a portion of the income the employee lost, employee lawsuits following an accident, and the medical bills for the employee’s injury and/or illness.
It is good to remember these four things about Workers Compensation Insurance:
- Even if the employee is at fault, it is still the responsibility of the employer to provide benefits. For example, if an employee is standing on a chair instead of a ladder and then falls off, the business is still required to provide the employee with Workers Compensation coverage.
- There are several aspects that reflect on your payroll
- The type of work being performed at the job. Every job has a “class code” which relates to the work they perform.
- Depending on the amount that a company spends on their annual gross income will determine their premium costs. It is mandatory to have an exact amount of payroll for the year and to communicate consistently with your insurance agent about your business’s payroll changes.
- Always remember that when getting a quote for your Workers Compensation Insurance, you are getting an estimate of your annual costs. Therefore, it is crucial you are always reporting to your insurance agent about any changes.
- Your payroll works hand in hand with your Workers Compensation cost. When your payroll increases, your Workers Compensation increases.
- The amount of past work-related injuries and illnesses. Not only the number, but also the severity of post work-related injuries can severely affect your premium costs.
- Ensuring that you have safety procedures and a safe environment in your workplace can lower your premium costs. Safer environments in the workspace can ensure that you will have less accidents, lowering your premium costs. Proactive agents work with employers to identify unsafe working conditions and zones to prevent costly injuries from happening.
- Look for a payroll service that works hand in hand with your Workers Compensation Insurance. Your WC insurance premium is subject to an audit at the end of the policy period. When it comes to your audit, you want your payroll information to be accurate so you haven’t under or overpaid. With a “Pay As You Go” WC service your premium will be calculated based on your monthly payroll, so there shouldn’t be any surprises at your audit.
- Not supplying your employees with Workers Compensation Insurance is a crime and can get extremely costly in fines! Remember to always accurately report the job descriptions of your employees, otherwise, you will be faced with a charge of fraud.
Workers Compensation insurance costs are always changing and having a good insurance agent to check on your status and help in the process is very important. NorthEast insurance is your specialist in Workers Compensation Insurance, give us a call at (732) 972-1771., ext. 1102.