Every business organization needs to be prepared for the worst. There are many uncontrollable and unavoidable circumstances which can cause some serious problems at workplace. Thus, you need to ensure the safety of your employees. It is extremely important that every business organization has Worker’s Compensation Insurance. This insurance makes sure your employees are covered when they get injured on the job.
Basics of Worker’s Compensation Insurance
This insurance covers a lot of different areas. Some of these include :
It includes medical bills, cost of physical therapy, travel expenses and other aspects associated with loss of limbs, ailments and breaks.
Worker’s Compensation Insurance covers up to Two-Thirds of an employee’s salary.
Rehabilitation is needed by your employees to get back to work. However, if an injured worker is unable to return to an original job, he will be placed somewhere else by the insurance company. He will not have to find a job on his own.
Worker’s Compensation Insurance keeps a business organization covered against any lawsuits filed by injured or disabled employees.
Needless to say, Worker’s Compensation Insurance not only works for the benefit of employees, but also the business organization. Some states have even made it mandatory for particular businesses to get Worker’s Compensation Insurance. Before you get started with this insurance, you need to consider some important factors. These have been mentioned below.
Rates
As mentioned above, many states require business organizations to purchase Worker’s Compensation Insurance. However, it is worth mentioning that not every insurance carrier is equal. You need to conduct a thorough research and shop around to make sure you’re able to find the best insurance policy.
States
Requirements and rates are different for every state. In most states, business organizations with less than five people don’t have to get Worker’s Compensation Insurance. However, established and large business organizations need to purchase this insurance privately. Some states even require businesses to get insurance through a state-operated fund.
Assigned Risk Policy
There are some similarities between an assigned risk policy and worker’s compensation policy. Since both look similar, most business organizations buy an assigned risk policy at a higher price. In order to avoid this, you should consult a reputed insurance agent and discuss a
Sources:
Wikipedia - Workers Compensation Australia
Smith’s lawyers – workplace injuries
Business.gov.au – Workers’ compensation requirements