Hiring employees for an expanding business entails knowing the state and federal laws on workers compensation insurance. After reading this article, you can provide better coverage for your employees.
What is workers' compensation?
It is an insurance program designed to cover the lost wages of workers who acquire damage while on the job. It is mandatory by the law in most states.
The legal basis of the coverage
Before the early 20th century, no laws were protecting the workers exposed to occupational hazards. Many workers succumbed to injuries or deaths. Only some of them took a step on getting compensation by filing complaints against the employers. A small percentage of those who sued their employers got their compensation because of contributory negligence, fellow employee negligence, and assumption of risk.
Most of the U.S. states followed the enactment of the Workers' Compensation Laws to prevent such legal appeal and to fulfill the demands of the workers.
Benefits of the insurance
The states assume a relatively similar trend on the benefits and coverages of the workers' compensation. Here are the general coverages:
The extent of the employer's responsibilities
The employers are required to reach out to the employees during the recovery phase to assess the ability to return to work. This method increases productivity and reduces the period of lost working days. It is also a precaution against increases in disability insurance.
Conditions for applying for the compensation
The coverage and benefits may be given to the employees if the injury occurred during the job, if he is not under the influence of alcohol or illicit drugs. It is also not necessary for the workers to be at the workplace when he sustained the injury. The more crucial element is that the worker is performing within the scope of his job description.
The quality of service provided by the employer affects the insurance and premium. The employer gives the experience rating which is a basis on the amount of premium. An above average experience rating entitles the worker's credit instead of debit.
Some Final Words
The performance of the workers may significantly decrease due to sustained injuries. It is crucial to get workers' compensation insurance for a secured individual in the workplace.
At Insurance Advisor Network, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (918) 528-6226. You can also request for a free quote by CLICKING HERE.