Workers Compensation

Running your business is hard work. Managing daily activities, acquiring and keeping new customers and coordinating employee efforts are all common and important duties. However, no matter how hard you try, you can’t always be there to make sure that things run smoothly, and in those moments disaster can strike in the form of work related injuries.

 

A slip, a fall or even a loss of limb or life can throw your business into turmoil and cause unspeakable damage to your employees and your livelihood if you do not have a proper workers compensation insurance policy in place. If one of your employees got seriously hurt on the job today would you be able to pay for all of the necessary expenses?

 

Did you know that your state may have specific requirements for workers compensation insurance coverage? Want to know more about the benefits that having workers compensation insurance offers your business? What follows is some important information about workmans compensation insurance and how it benefits you, your business and your employees for unavoidable workplace injuries.

What is workers compensation?

Workers compensation, which is also known as workers comp, is a type of insurance that covers financial losses related to on the job injury or illness, such as medical bills and lost wages. This type of policy also protects you, the employer, from any potential lawsuits and claims brought forth by an injured employee who alleges negligence that results in injury while carrying out business activities on your behalf.

 

With the right employee compensation coverage, members of your staff are fully protected when an accident takes place, no matter who is at fault. Having workers comp insurance is an important aspect of United States labor law and is generally mandatory and guided by the Department of Labor and specific industry and workplace regulations, depending on the state in which you own and operate your business.

What does workers compensation cover?

The major coverages that workers compensation insurance provides for an injured worker include the following:

Lost Wages

Compensation of employees for any lost time and wages suffered after a workplace accident or illness. However this benefit is typically capped at a specific percentage of the employee’s monthly salary as well as a limited time period for benefit payments.

Medical Bills

Full payment of medical bills that result from workplace injuries, which include doctor’s visits, emergency and follow-up treatment, medical transportation, hospital fees and rehabilitation services.

Short Term Work

Short-term occupational opportunities for injured employees until they can resume their usual duties.

Lump Sum Death Benefits

A lump sum death benefit payable to employee dependents, and in many cases, compensation for final expenses.

Rehabilitation

Assistance with career or vocational rehabilitation after a life changing injury. This includes education and training for a new career if a worker is unable to resume their usual position in the workplace.

Disability Payments

Disability payment that compensates an employee for permanent work-related injury and damages that affect their ability to perform specific duties.

It is important to work with your insurance broker to develop the best policy for your workplace needs as regulations and requirements for workers compensation insurance may vary from state to state.

Workers compensation in North Dakota

North Dakota has a state funded (monopolistic) workers compensation program and has specific guidelines that employers must follow for providing workers compensation insurance to their staff.

  • If you employ individuals permanently or temporarily for full or part-time work, you are required to have workers comp insurance in North Dakota.

 

  • Independent contractors are typically required to show proof of workers compensation insurance before they can be hired.

 

  • In some cases, general liability insurance is necessary in addition to workers comp insurance to provide maximum protection and benefits for workplace injuries.

 

  • Sole proprietors, limited liability company and partnership members, as well as corporate officers are not automatically covered by workers compensation provisions in North Dakota.

 

  • Once an Independent Contractor Verification Application is in place, its holder becomes exempt from having workers compensation insurance coverage.

 

  • General contractors must provide coverage for subcontractors until they establish their own policies.

Workers compensation in Minnesota

Workers compensation laws in Minnesota make having coverage mandatory for all employers in the state except for a few exempt entities that are outlined in state statutes. However, the state does not offer the insurance directly.

  • Employers must obtain workers comp coverage from insurance providers licensed by the Minnesota Department of Commerce to write workers compensation policies in the state.

 

  • A type of insurance known as assigned risk pool or assigned risk plan is available through the Minnesota Workers’ Compensation Insurers’ Association if you are unable to secure adequate coverage from a commercial insurance provider.

Workers compensation costs

The cost of workers comp insurance is difficult to predict without specific information such as the state the business operates in as well as how much compensation and coverage state mandated regulations require each employee to receive. The cost of medical care in the area in question is also an important factor for determining premium rates.

 

Unlike some other types of insurance such as health or dental, workers comp has no deductible payment attached to it and is generally not tightly controlled. This makes it important to work with an experienced business insurance agent to ensure that your policy costs remain under control.

Ihry Insurance has your employees covered

Your top priorities are your employees’ health and keeping them safe in the workplace. It only takes a split second for something to go wrong that leads to a long and difficult journey to full physical and financial recovery.

 

Having workers compensation insurance ensures that your business and its employees are fully protected if an unfortunate incident occurs. It provides the security and compensation necessary to support your employee as they recover and also assists you with getting your business operations back to normal as soon as possible.

 

Is your organization in compliance with state regulations and ready for whatever life may throw your way? Contact Ihry Insurance today and speak with one of our agents to confirm your state regulations and to get a free workers compensation insurance quote.

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