There are a lot of misconceptions about workers’ comp. Many business owners wonder what type of workplace injury requires coverage. This can be especially true in accident-prone industries such as construction. This begs the question: when should workers’ comp get involved with an on-site injury? Here’s the answer to that question along with other important information surrounding workers’ comp.
What is Workers’ Comp?
Workers’ compensation insurance refers to coverage that protects employees and your business when an injury occurs on-site. Workers’ comp ensures that the insurer pays for all medical expenses related to that team member’s injury. This can include medical needs like surgeries, rehabilitation, and medical equipment. Most U.S. states require a form of workers’ comp for all businesses.
Employer Responsibilities
Under normal circumstances, workers’ comp should always cover workplace injury or illness. However, this can change if you fail to adhere to state and federal employee responsibilities. In this case, the insurer will not cover any of the benefits needed by the employee. Instead, you’ll be held responsible for their immediate or long-term healthcare expenses. You’ll be required to cover employee medical expenses in cases of willful misconduct, discrimination, and unsafe working conditions.
Monthly Costs
The amount you pay for workers’ comp will depend on a number of factors. Payments will vary based on your number of employees, business location, and the type of work they accomplish. Even so, like other insurance policies, workers’ comp is typically paid through monthly fees or annual premiums. Generally speaking, an average payment of workers’ comp costs $78 a month, or $936 per employee per year.
Minor Injuries
Even if an injury appears to be a minor sprain, it’s always best to tell your insurer about it. This supposed sprain could reveal itself to be a broken bone, requiring further medical attention. Making your insurance aware of this injury later could make the process more difficult. Thus, even if the workplace injury or illness is minor, always turn it in. The worst that could happen is that it ends up becoming “for notice only.” In other words, when in doubt, overreact.
