Workers’ Compensation Insurance
Workers’ compensation insurance is a type of business insurance policy that offers benefits to employees who suffer from work-related illnesses or injuries. Here are the key points:
- Medical Coverage: Employees receive compensation to cover medical expenses, including doctor appointments, hospital visits, and medications.
- Lost Wages: If an employee cannot return to work at full capacity due to their injury or illness, wage-loss benefits help supplement their income. These benefits continue until the employee recovers or reaches the wage-loss benefit limit.
- Vocational Rehabilitation: After an injury, employees may access vocational rehabilitation services. These services help them learn new skills and reintegrate into the workforce.
- Death and Dependent Benefits: In tragic cases where an employee loses their life due to a work-related incident, workers’ compensation can cover funeral costs and provide lost income support. These benefits typically go to the deceased employee’s spouse or dependents.
Benefits for Employers
Employers also benefit from workers’ compensation insurance:
- Lawsuit Protection: Having this insurance can protect your business from potential lawsuits related to workplace injuries.
- Compliance: It ensures compliance with state regulations regarding employee protection.
Pay-As-You-Go Workers’ Compensation
A Pay-As-You-Go workers compensation plan calculates your workers’ comp premiums each pay period based on your actual payroll amounts. Unlike traditional premium plans, where you estimate annual payroll and pay a fixed monthly amount, pay-as-you-go ensures that you only pay for what you need. Unlike a traditional workers compensation program, there are many times no audits at the end of your policy term, thereby saving you time and potentially a lump sum due when your policy expires.
Advantages of Pay-As-You-Go Workers’ Compensation:
- Eliminates Upfront Costs: No need for large upfront payments.
- Accurate Premiums: Real-time payroll data ensures precise premium calculations.
- Simplified Billing: Combining payroll and premium payments streamlines administrative tasks.
State Variations
Keep in mind that workers’ compensation laws vary by state. This impacts benefit limits, duration, and the types of employers required to have coverage. Contact us today to discuss your workers’ compensation insurance options and get started on securing your business and employees.