Many states require businesses contractors to purchase and maintain a worker’s compensation insurance policy.
The requirements may vary state to state; however, in most cases it is required and if not required, it is always a good idea to have.
The differences state to state are like most insurance requirements that vary state to state i.e.; in the state of Iowa, all businesses/contractors with employees must carry workers compensation insurance.
In the state of Missouri, businesses with less than 5 employees are required to carry workers compensation insurance. Contractors with at least 1 employee must carry workers compensation insurance.
Yes, you have great employees and have very structured safety procedures and protocols, but let’s face it, life happens. Let’s discuss why it is a good idea to protect your business and employees by carrying workers compensation insurance.
Workers Compensation Insurance
Workers compensation insurance covers the expenses associated with an employee’s work-related injury and/or illness including but not limited to; ambulance rides, ER visits, lost wages, and long-term healthcare costs like physical and occupational therapy.
Medical Costs for immediate treatment
Let’s say one of your employees is carrying a box and doesn’t see the box on the floor that he/she is approaching. Your employee trips and falls suffering a hurt elbow and ankle.
Your employee is going to need medical attention and those costs are your responsibility because your employee was injured on the job.
This is where workers compensation insurance comes into play. In this case the policy can pay for the ambulance ride, emergency room visit, medication, and the follow-up treatment.
Employee Lost wages/Loss of Income
In addition, this employee may have to miss work to treat and heal their injuries. The workers compensation policy can also cover the employee’s missed wages/lost income.
In addition, you may have to find a temporary replacement and endure training expenses to get that person up to speed. Workers compensation insurance can help relieve those burdens as well.
Future Medical/Treatment Expenses
The ongoing care that the injured employee will need to receive may include; physical therapy, surgery, rehabilitation, and treatment from specialist.
Even if that employee never returns to work, you may still be responsible for their ongoing care because the injury happened on your site while that person was your employee.
Funeral and Death Benefits
In the worst of cases, funeral and death, workers compensation may cover funeral expenses as well as death benefits such as support payments to the employee’s’ dependents.
If the employee files a lawsuit against your business, you workers compensation has employer’s liability coverage. This covers the liability aspect of the situation and can help pay attorney fees, court costs, and settlements.
Not all policies are the same and as stated earlier, requirements vary state to state. Give us a call to so that we can discuss the best options for you, your business, and your employees. Let us worry about building the best protection so that you can focus on your business.
Get your questions answered on how to handle your workers compensation coverage for your business?
About Ryan Ruffcorn, Muntz Insurance
Ryan grew up in Keokuk, graduated from Keokuk Senior High, and started his agency in Keokuk from scratch in 2003 after having worked for one of the largest international accounting firms, KPMG, LLP.
Ryan is hardworking; his loyal and trustworthy character is exemplified by the way he does business. He thoroughly enjoys helping clients through the insurance buying process to secure coverage for their most valuable assets.