Workers Compensation (WC) A. WC: What It Is B. WC: Why You Need It C. WC: Who It Covers D. WC: What It Costs E. WC: Claims F. WC: Audits G. WC: How To Buy It H. WC: 10 Good Things To Ask About WC
(A) What It Is It s on-the-job insurance for injured workers. Workers Compensation provides Benefits to your employees for work related injuries or illnesses. This includes medical care, wages from lost work time, rehab, disability benefits and survivor or death benefits. 1) Protects your business if you re sued - An important part of what you get with workers comp is Employer s Liability. This helps protect your business against lawsuits from your employees or their family members for on-the-job injuries or illnesses. 2) May give you short-term coverage in other states - If you have a new or temporary operation in another state, you ll need to get workers comp in that state. Check with your agent, as you may be able to get short-term coverage there to help you in the transition. (B) Why You Need It Health insurance is not a substitute when one of your employees gets hurt on the job or has a work related illness, only workers comp will cover them. Health insurance won t even consider the expenses, like your employee s pay or medical deductibles. 1) You don t want to be held personally liable Without workers comp you may be held personally liable for the cost of your employees medical care for a work-related injury or illness. And even their wages while they re out recovering. 2) Protects you in a lawsuit If one of your workers get hurt on the job and their family decides to sue you, workers comp is there to help you with legal fees, loss of earnings and more. Some policies provide more legal coverage for you than others so compare and get the most you can. 3) Speaking of the law - There s one more reason why you need workers comp it s the law for most businesses. In fact, you may be fined or even jailed for not having it. 4) What if one of your workers was out for a few weeks Without workers comp you may have to cover lost wages. Below is a list of one week s pay for different professions:
Accountant $1,296 Barber $531 Cashier $365 Dentist $3,016 Electrician $977 Financial Analyst $1,639 Paralegal $963 Retail: Supervisor $752 Sheet Metal Worker $863 Steel Worker $932 (C) Who It Covers Full-time, part-time maybe even you. The laws vary by state, but full-time and part-time employees are covered by workers compensation and in some states business owners, partners, and officers may be covered too. Who s required to get workers comp Usually if you have at least one employee you need to get workers comp, in some states, the business owners (you) is considered an employee, which means you ll need it. (D) What It Costs Rates are based upon three key factors. It depends on the business you re in, your workers compensation track record, and how that compares to other companies in the same business. And finally, it depends on how much you pay your people. 1) Safety pays Something else that can impact your cost is credits and debits. In most states, insurance companies apply these to your premiums. The good news is that you may qualify for a credit, which will reduce your premium. Credits may be available for things like workplace safety programs, even teaching your employees the right way to lift boxes. When you put safety first, your employees will be better off and so will your bottom line. 2) Quick reporting pays too When you immediately report an on-the-job injury you ll reduce the ultimate cost. That s because the sooner your employee gets the right medical care, the sooner they get better and get back to work. Another plus to your bottom line. 3) Will your workers return to the job after being out If your employee has been out of work for more than 12 weeks, because of a work related injury or illness, what chance do they have of returning to their job?
Less than 50% return. So be sure to report injuries immediately to get the care your workers need to get back to work as quickly as possible. 4) A snooze will do a world of good Tired workers don t perform well and are subject to more injuries. Encourage your employees to take a nap and you will be rewarded many times over. When? How Long? Why? Best time is from 1 pm to 3 pm 30 minutes or less Improves motor skills, reaction time, alertness, perceptual skills Case in point: A 30 minute nap for a pilot = 16% improvement in reaction time Another pilot not napping? 34% decrease over a long-haul flight (E) Claims Report it right away, big or small. The best thing you can do for your employees and for you is to immediately report all on-the-job injuries or work-related illnesses. This will help them get the care they need and protect you in case their small cut with a few stitches turns into something much bigger down the road. 1) Network of care While the rules in each state vary, many states require your employee to stay in an approved network of caregivers. These folks have the expertise needed to get your workers back on their feet as quickly as possible. 2) Claims expertise makes all the difference How an insurance company handles a claim could impact the life of one of your workers forever. Is there a comprehensive approach to care? Will your insurance company stand by your employees, and you, for the long run? What about productivity, employee morale? And your future premiums? Now is the time to find out, not when something happens. Did you know? Thanks to Team-Work, The Hartford gets injured workers back on the job six days earlier than without their unique approach. The Most Stressful Jobs:
1. Firefighter 2. Senior Corporate Executive 3. Taxi Drive 4. Surgeon 5. Police Officer 6. Commercial Pilot 7. Highway Patrol Officer 8. Public Relations Officer 9. Advertising Account Executive 10. Real Estate Agent (F) Audits An audit is a good thing. Really. The purpose of an audit is to make sure you re paying the right premium so that you don t pay too much or too little. The result is often a refund. 1) How it works Your premium is based on an estimated payroll amount at the beginning of the policy term. Audits occur after your policy term. An auditor verifies your actual payroll along with your job classifications either at your place, via email, or over the phone. 2) Real-time reporting Find out if your insurance company offers a payment service based on actual payroll. That means you ll pay as you go and your premiums won t be based on an estimated amount. This can improve your case flow, reduce guesswork and make the end of the policy term a snap. (G) How to Buy Your choice today could last a lifetime. Having workers compensation may not be a choice. But who you get it from is. Ask questions, compare coverage and look at reputation. Your decision could make the difference in the life you re your employees. 1) What to look for when you re looking Make sure the company is reputable and financially secure. Look at their approach to caring for your employees, and your business. Compare policies. Ask about credits for safety programs. Find out if there are pay-as-go premiums to help manage your cash flow.
2) You have choices for the Employer s Liability part A workers comp policy includes Employer s Liability. If you already have other business liability policies in place, you may choose to select a more modest amount of Employer s Liability. Note: 54% of the costs of claims are for medical expenses. Who you select to manage those claims may be critical. Not all workers comp policies are the same does your policy offer payment of these extras for no additional cost? Loss of earnings Cost of bonds, appeal bonds Litigation costs Interest on judgments 60 days of coverage for new operations The Hartford gives you these on most workers comp policies. Talk to us. (H) 10 Good Things To Ask About Workers Comp Talk to your agent: The West Virginia Medical Insurance Agency, Steve Brown, Agency Manager 1) What are the state-specific rules and regulations? Workers comp is different in every state. Ask about the laws in your state. 2) How many employees do you need before workers comp is required? Ask about owners, subcontractors and other types of employees such as those you ve issued 1099 s. 3) Is there short-term coverage in another state? If you re going to move or set up temporary operations in another state, find out if you can get short-term coverage in that state. 4) How do safety programs impact rates? Most companies will apply a credit to reduce your premium if you have safety programs in place. 5) Explain how past history impacts rates. Your track record, called experience modification, compares you to other companies in your business for claims. The process varies by state, so ask. 6) Can the amount of Employer s Liability be adjusted? This comes with your workers comp. You may be able to increase or decrease the amount based on your needs. 7) Explain how employees are cared for after a claim is submitted. This may be one of the most important aspects of workers comp. Ask about each phase of the care and recovery.
8) Is there real-time payroll reporting? Premiums are usually paid upfront based on estimated payroll. Real-time reporting is based on actual payroll and lets you pay as you go. 9) Which extras, above the basic minimum, are offered at no extra cost? Ask if the policy will pay for loss of earnings, costs for bonds and appeal bonds, litigation costs, interest on judgments. Will it give you 60 days of coverage for a new operation? 10) What is the reputation of the insurance company? Are they A-rated? Ask your agent. Are they reputable, financially secure with a long history? Do they handle claims quickly? 1-800-257-4747 Ext 22 304-925-0342 Ext 22 steve@wvsma.org Web-site: wvmia.com Fax: 304-925-3166 Steve Brown, Agency Manager