When you are an employer, there are many considerations to keep in mind to ensure your business runs smoothly. For example, you need to be aware of the laws and regulations that apply to your business and how they impact your employees. One thing that can have a big impact is workers’ compensation if any of your employees sustain injuries while working. Use this guide for questions to ask about workers’ compensation when investing in insurance.
1. What Options Exist for Processing Workers’ Compensation Benefits?
When an employee is unable to work due to an injury he or she sustains on-the-job, filing a workers’ compensation claim is usually necessary. After the claim processes, the employee can then receive benefits, usually in the form of financial compensation. As a business owner, finding out about benefit administration services such as myMatrixx can help your organization deal with the pharmacy benefit management side of things with the help of an experienced and professional third-party team.
2. What Are State Rules and Regulations for Coverage?
Although workers’ compensation falls under federal law in the United States, states vary in the rules and regulations that apply to it. For this reason, you should become aware of the local policies that impact your business. Keep in mind, your city may have additional rules and regulations that go beyond whatever the state requires. Depending on your location, you may need to follow both types.
3. What About Work in Other States?
Do you have employees who perform work in other states? If so, this is another question to ask about workers’ compensation. When it comes to workers’ compensation insurance, many policies automatically cover out-of-state work, but that is not always the case. Wherever your employees are when working, you need to make sure the coverage is available to them. Make a list of all locations where employees perform work for your company. Keep in mind, different locations may have different types of coverage.
4. Do Drug and Safety Programs Impact Workers’ Compensation Rates?
Many workplaces make the choice to implement drug prevention and other safety programs because doing so can significantly lower business costs in terms of workers’ compensation. According to researchers, employers with such programs usually spend less because employees are less likely to take part in risky behaviors that often lead to injuries at work. Find out about ways these types of programs might help you lower costs while keeping your workplace safer.
5. Will Past Claims Impact Current Workers’ Compensation Rates
Always keep good records of all workers’ compensation claims so you can use the information if necessary in the future. With this in mind,another question worth considering is how past claim history might impact current workers’ compensation rates. For example, if you have had numerous claims in the past, will that increase your rates going forward? If so, find out how you can possibly lower rates and then meet with organizational leadership as well as your front-line employees to discuss ways to reduce workplace risks.
6. What Does Compensation Cover?
In general, workers’ compensation covers costs for employees when they sustain an injury and are unable to work. Depending on the situation, that typically includes medical expenses, lost wages and ongoing care costs. If there is a death, workers’ compensation usually covers funeral expenses, too. However, it is unwise to assume what a policy covers, so be sure to ask.
7. Are There Extra Coverages Included?
In addition to the minimum benefits that most workers’ compensation includes, many employers offer policies that go beyond the basic coverage. To learn more about any extra coverages, ask about compensation for bonds and appear bonds and litigation costs as well as interest on judgments. There may also be additional benefits when it comes to loss of earnings.
8. Who Pays for Workers’ Compensation Benefits?
Employers usually have the choice to directly pay for benefits or to purchase workers’ compensation insurance. In the U.S., the law requires most states to carry some form of workers’ compensation insurance anyway, but coverage is elective. Because workers’ compensation costs can vary greatly, so, too can the insurance premiums. As such, you should inquire about who pays for benefits in a variety of situations.
Learning more about policies, laws and regulations that impact your business and employees can help you be a better manager while also saving your company money in the long run. At the end of the day, knowledge is power. Use this list as a guide before you make any decisions regarding workers’ compensation benefits or insurance.