Choosing a Workers Compensation Coverage Plan for Your Company
Workers’ compensation coverage is a type of insurance that is meant to protect your company or business. For an employee to claim workers compensation, they do not have to prove that you the employer were negligent. All they have to show is that they were injured while engaged in work-related activities.
Even if your firm already has some form workers compensation insurance coverage, there is a chance it might not be enough. You also may not be instituting practices to help mitigate potential claims. These facts mean that you could be leaving yourself open to substantial financial consequences. A risk assessment consulting firm is an excellent way to evaluate your position and ensure you obtain the right amount of protection.
Choosing the Right Coverage for Your Business
The key to a profitable business is to minimize risk. Workers’ compensation insurance is a great way to ensure that you don’t have to pay out of pocket for an employee’s injuries if they are hurt at work. The best way to determine the appropriate amount is by analyzing the amount of risk that employees face in your particular industry. If you have a high-risk business like construction or manufacturing, you are going to want to have a higher amount of coverage than if you have an office with salespeople. Risk management firms can help take the industry trends and custom tailor a coverage solution based on your operations.
What Does Your State Require?
Most states require specific provisions related to the amount of workers’ compensation carried. Only the state of Texas does not require that employers carry workers’ compensation. So it is imperative that you know what the state you operate in mandates for workers’ compensation. State laws also demand regular company audits. Although that might sound like a hassle, it can actually benefit you. It will help to ensure that you are working within the law. A risk assessment consulting firm can help to ensure that you are compliant with state laws.
Consider Where You Live
Workers’ compensation coverage pays for things like standard of living changes. If you are in an affluent area, then you are going to need more coverage than somewhere else. So, it is critical to understand what the economics are for your workers. You also need to know how much it will take to pay for someone’s injuries.
Institute a Safety Culture
If you and your risk management team determine that your firm can reasonably expect injuries that lead to workers comp claims, it may be wise to consider implementing a total safety culture. At times in the past, workers comp claims have exceeded actual wage growth nationally. Your firm can protect itself from these trends by instilling a a safety culture tailored to your operations.
Ask the Experts
When determining how much workers’ compensation needed to minimize the downside risk of an onsite injury, there is a fine balance between paying too much and too little. More coverage may be better, but you need to ensure your company is not paying more than it should. The risk assessment experts at Diligentium can evaluate your workers’ compensation needs, and can make sure that you are covered if an employee is injured. They also work to find the right kind of coverage, so you aren’t paying more per month than you need. Contact Diligentium today to discuss your coverage needs.