Archive for category: workers Compensation

Understanding the Scope and Benefits of Workers’ Comp Insurance for Your Business

Workers’ compensation, also known as workers’ comp, covers medical expenses and lost wages entailing injury or death of employees who become injured or ill while at work or because of work-related contingencies.

An employee will only be covered for such injuries or illnesses that are related to their job duties. Workers’ comp insurance is required by most states, though there may be exceptions.

Here’s what you need to know about the coverage provided by workers’ comp insurance and how it will benefit your business.

What Is Covered By Workers’ Comp Insurance?

1. Health Conditions/Illnesses

Workers’ comp insurance can help cover your business if an employee suffers an injury or comes down with an illness while on the job. If the employee is unable to work, this coverage provides part of the lost wages and hospital bills for treatment. The health benefits of this coverage include physical therapy, surgeries, and medications. Businesses carrying this coverage are well-protected for unforeseen circumstances where an employee requires financial assistance to help them get back to work.

2. Death

If an employee is killed in a work-related accident, the workers’ compensation insurance helps provide financial benefits to the employee’s family, covering funeral expenses. If the death is not a direct result of the injuries suffered when carrying out work duties, the beneficiaries of the deceased would be entitled to the Permanent Partial Disability (PPD). The PPD is the compensation that the deceased would have been paid for the permanent nature of the injuries had he not died.

This coverage is highly beneficial to the employees of a business; however, the business owner stands to gain as well. It limits the possibility of being sued by a grieved employee for maltreatment or insecurity. It also helps cover part of the cost for emergencies. Workers’ comp insurance is mandated in most states, so purchasing is obeying state regulations.

Although workers’ compensation insurance is required for businesses with employees, buying this insurance provides other benefits besides following state regulations, which can help protect and ensure stability for your business.

How Will Workers’ Comp Insurance Benefit Your Business?

1. Provides Job Security that Helps Retain Top Talent

Job seekers look for companies that offer protection against injuries. Jobs are a form of financial security for many to promote independence and personal achievement. Employees will not settle for a job that disposes of them once they are unable to perform because of injuries suffered while carrying out work duties. A successful business is nothing without hardworking employees, and a lack of job security results in a lack of motivation to work. If an employer offers little to no coverage at all, the workers will be skeptical and unwilling to take the risk. If an employee accepts the job, they will keep their ears to the ground for better offers that include security. Having workers’ comp insurance will help to put your employees at ease.

2. Builds Your Business on the Foundation of Trust

Once trust has been established, the workforce can focus on attaining a common goal. Carrying this coverage policy lets your employees know that they can count on you when it matters most. Security brings peace of mind, which encourages workers to be more efficient and productive.

Workers’ comp policies also reward businesses that incorporate safety procedures and create safety committees through premium discounts. The discounts help businesses and insurance providers by lowering costs and providing a safe and better working environment for everyone.

If you have more questions about workers’ comp insurance coverage, contact the professionals at Chambers & Company Insurance Brokers today. We are here for your business during this unusual time.

COVID-19 Business Interruption, Workers’ Compensation, and Liability Legislation

New coronavirus-based insurance litigation is being implemented. The new policies plan to overhaul business interruption, workers’ compensation, and general liability coverage as more states start to plan for economic activity heading back to normal. Many legal analysts predict that there will be thousands of coronavirus lawsuits filed over the next decade. Even as state governments mandate that things open back up, there are still many liability issues that need to be addressed.

Liability Shield

Republican lawmakers would like to add an employer liability shield to the next round of COVID-19 Business Interruption & General Liability pandemic legislation. Several Democratic lawmakers are not on board with the idea. They believe that the only way business owners can avoid COVID-19 Workers’ Compensation litigation is by adhering to the guidelines put forth by the Centers for Disease Control and Prevention. Workers want assurances that things are safe enough to head back to work. Employers want protection so that they will not be sued if things don’t go smoothly and someone gets sick. Many worker’s rights advocates believe that shielding business owners from potential litigation will reduce their desire to create the safest work environment possible. Ultimately, if people don’t believe that it is safe to go to work or head to the store, they will not go back.

The Workers’ Compensation Debate in California

California Governor Gavin Newsom signed an executive order that helps essential workers who contract COVID-19 and are fighting to secure workers’ compensation benefits. Governor Newsom hopes to simplify the process of filing for worker’s compensation benefits so that workers are given the protection they deserve. The amended policy puts pressure on business owners to prove that their employees did not contract the coronavirus while working on the job. The California Federation of Labor believes that the legislation is necessary to help protect the lives of essential workers. However, the California Chamber of Commerce was critical of the legislation, saying that business owners are now being forced to deal with expensive new mandates that they are unequipped to handle. Many business owners believe that it is unfair to be forced to act as a social safety net.

NCCI Study

According to a study done by the National Council on Compensation Insurance, a small fraction of healthcare workers contracting COVID-19 could lead to substantial losses in the sector depending on the state. Another study showed that the worst possible outcome would be over half of the workforce getting infected. The result is billions of dollars in increased costs. Even if businesses only have to deal with first responders and healthcare workers getting infected, they would still be held liable for over a billion dollars’ worth of claims.

Whether you are a business owner or an essential worker, you must stay informed on the current COVID-19 Business Interruption, Workers’ Compensation, and Liability legislation. It has a direct impact on your future. If you have any questions about your insurance coverage, contact the professionals at Chambers & Company Insurance Brokers. We are here for your business during this unusual time.