Buy workers compensation for your employees
As a business owner, you will want to purchase workers’ compensation health insurance for your employees. Workers’ compensation not only protects your employees in the event of an injury, it also protects you from a potential lawsuit. Most states require companies to purchase workers’ compensation or face heavy penalties. However, the laws vary from state to state. Some, like California, require workers’ compensation even if you only have one employee, while others only require it for certain types of jobs. Check your state laws before deciding if you need to purchase this coverage.
When you first buy workers’ compensation health insurance, your premiums will be based on claims trends in your industry, as well as your payroll. If historical data shows that injuries on your field are high, expect to pay higher premiums. However, over a period of time, your business will be rated based on the number of claims filed. Lower claim amounts will be rewarded with lower premiums and vice versa. If you believe you are being charged incorrectly, you can request a premium audit. Keep in mind that if the insurance company finds a higher than expected payroll, your premiums may increase.
While workers’ compensation health insurance may seem expensive, the ability to compensate your employees protects you from costly laws. However, you can greatly reduce your premiums by maintaining a safe workplace. This will involve training both yourself and employees to maintain high safety standards. Many companies also reward employees or departments that can last a certain amount of time without an accident. You may be able to lower your premiums even further by participating in an employer security program or training course.
Some states (West Virginia, Ohio, North Dakota, Washington, and Wyoming) sell this coverage through state agencies. In other states, however, you can buy insurance through one of many insurance companies, including some well-known companies like Liberty Mutual. A third group of states operate with a hybrid model where you can choose to buy from the state or from an independent insurance company. Texas is in a category of its own and does not require workers compensation. However, if you choose to opt out of workers’ compensation and one of your employees is injured on the job, your company is expected to pay all required compensation. Please think carefully before deciding to opt out.
If you are a business owner and need help with this, we can help. Visit our website at http://www.health-insurance-buyer.com and leave your contact information so one of our licensed agents can provide you with a free consultation.