Workers’ compensation coverage pays for medical care and physical rehabilitation of employees injured at work and helps to replace lost wages while they are unable to work. Additionally, this coverage protects an employer from being sued by an injured worker in most cases.
Workers typically receive benefits regardless of who is at fault and if the employee dies benefits are provided to their dependents.
C.K Ash Insurance can help your business find complete solutions to your unique workers compensation insurance needs. We’ll find solutions that create safer and more productive workplaces, more confident and secure workers and overall savings you’ll see on the bottom line.
Coverage for office workers using their own vehicles on company business is often needed, as well. If you have employees, it is critical that you consider this workers compensation coverage.
What you need to know about Workers Compensation Insurance
Workers Comp is different in every state as it is based off of state laws and court decisions. Each state decides most of everything when it comes to the policy including the amount of benefits employees are entitled to, what injuries are covered, & how medical care is given. Also states decide if they are going to allow coverage to be provided by private insurance companies, state run companies, or by the state alone. The following states run their own workers comp program and must be purchased directly from the state (also none as Monopolistic States):
- North Dakota
- Puerto Rico
- U.S. Virgin Islands
Do I have to purchase Workers Compensation?
Most States require that businesses buy Workers Comp for their employees, and many already exclude or allow owners to exclude themselves from coverage. Many states do not require businesses to purchase Work Comp if they have no employees.
The State of Kentucky requires that all employees be covered under Workers Comp and the definition of employee is as stated:
“Every person, including a minor, whether lawfully or unlawfully employed, in the service of an employer under any contract of hire or apprenticeship, express or implied, and all helpers and assistants of employees, whether paid by the employer or employee, if employed with the knowledge, actual or constructive, of the employer” (KRS 342.640)
This basically states that anyone working for you whether they are an employee, sub-contractor, W-2’d, 1099’d, family, etc. have to have Workers Comp coverage.
For questions about this or other state requirements please Contact Us to discuss.
What is an Experience Modification Factor?
Businesses with a Workers Comp premium above a certain amount are eligible for an experience rating called an Experience Modification Factor (also known as E-Mod). This factor is based off of the businesses claims history relative to other companies in the same industry. If your business has a higher amount of claims compared to the rest of the industry your E-Mod will be higher which raises your premium.
The biggest factor in an E-Mod is the frequency of claims; if you take one large claim and compare it to two claims that add up to the same amount your E-Mod will be higher if you had the two claims rather than the one. This is because Insurance Companies believe that the more accidents there are the poorer the working conditions are for that business and therefore are more likely to have claims.
Keeping Accident Reports
Most states require business to keep records of accidents and those accidents are typically reported to the state workers comp board and the insurer. Many insurers will take what is call a “First Report of Injury” which they will file on your behalf with the state workers comp board. By turning this report in it triggers the claims process and the faster you turn this in the quicker the Insurance Company can settle the claim which costs less and makes your premium lower.
Other than not having claims, the best way to keep your premium lower is to get employees back to work as quickly as possible. You want to make for sure that they are released from their doctor before bringing them back, and you can often give them light duty until they are able to go back to full duty. Teaching and stressing the importance of the claims process to your employees is crucial to keeping a safe work place and a lower Workers Comp premium.