Employers always try to provide the safest working environment for their staff. But even the most conscientious businesses are not immune to the occasional workplace accident. With workers’compensation insurance, businesses can provide benefits to injured or sick employees while protecting themselves from costly lawsuits.
Unlike other forms of business insurance, workers’ compensation is required by law. You must provide coverage for all full- and part-time employees or face federal and state penalties. Each state develops its own regulations to ensure that businesses provide compensation and health benefitsto employees who are hurt or become ill on the job.
Workers’ compensation insurance is also a no-fault policy- your employees can usually receive benefits for a workplace injury even if you weren’t directly responsible.
Workers compensation is priced with the help of the NCCI. There are approximately 750 workers compensation codes with most states using the same codes, but pricing still varies by state. Workers compensation premiums are calculated based on each $100 of payroll. For example, a low-risk occupation like clerical might cost .24 cents per $100 of payroll. Premiums rise as the risk of a given job increases, such as contractors who may cost about $10 per $100 and even higher-risk occupations like roofers costing as much as $20 per $100. If your workers compensation insurance premium is in excess of $5,000, you should have a plan that pays you back a dividend based on your claims history. Our workers compensation specialists will assist you in determining what program is best suited for your business.
Contact us at (718) 435-4502 or email us at info@jklein.biz.
Another option in many states is self-insuring your company to cover the costs from employee injuries or death. Whether this is a good idea depends on your business, especially your financial state or that of your company. Contact us today to find out more about self-insurance at info@jklein.biz.