As you might imagine, questions commonly asked in the insurance industry relate to paying lowering insurance rates – how can money be saved? But in addition to saving money, it is important that a policy provide complete coverage. Besides these frequently asked questions, oftentimes questions arise regarding Workers’ Compensation. But, what exactly is Workers’ Compensation?
In nearly all 50 states, Workers’ Comp statutes require you to provide these benefits for all employees.
Workers’ Compensation is a state-mandated insurance program that provides compensation to employees who suffer injuries or illness while on the job. It is the exclusive remedy for workplace injuries. A unique aspect of Workers’ Comp is that regardless of who is at fault, no proof of negligence is needed in order for an employee to receive benefits. This policy also provides benefits for employers’ liability, negating the need for related lawsuits. Benefits for dependents of workers killed by work-related accidents or illness are also provided.
Workers’ Comp benefits are not provided for injuries and illnesses that are not related to employment. Injuries must occur while the employee is working, during designated working hours, and while performing duties he/she was employed to do. Even though no proof of negligence is needed, an employee cannot intentionally injure himself/herself or be “under the influence” during the event of an injury. However, if the employee unintentionally contributed to his/her own injury, benefits must be provided.
Why does your salon need Workers’ Comp? It should be considered a mandatory part of your insurance portfolio. Once Workers’ Comp laws became effective, all work-related injuries and illnesses become the responsibilities of the employer. Injured workers are not permitted to sue an employer for injuries if covered by Workers’ Comp insurance. In nearly all 50 states, Workers’ Comp statutes require you to provide benefits for Workers’ Comp to all employees. These statutes compel employers to provide coverage and protect the employers from being sued.
If you are in compliance with state law, an employee cannot sue you for workplace injuries. However, if you choose to violate state law by not providing Workers’ Comp benefits, the statute does not protect you from lawsuits. If you are doing business without providing Workers’ Comp benefits, you are exposed to unlimited liability for workplace injuries in addition to penalties imposed by the state for violating law. If you choose to reject the Workers’ Comp laws, the employee may sue you for injuries; but you will be denied the use of common law defenses, such as assumption of risk or negligence.
Is your state monopolistic or competitive – and what exactly do these terms mean? In monopolistic states, Workers’ Comp insurance is only available through a state fund. In competitive states, Workers’ Comp coverage is available through private insurers, as well as any state fund that may exist.
How do you get a quote for Workers’ Comp insurance? Great news! Universal Insurance can now offer the coverage in most states. Even better news is that the process is very easy. Contact your specialized agent to get a quote on Workers’ Comp.
