Workers Compensation Insurance
Workers Compensation Quick Info
- Handling all of the workers compensation audits
- File statutory Workers Compensation Notice of Injury reports
- Implement Return To Work and Transitional Duty Programs
- Conduct post-accident drug testing
- Coordinate medical care for your injured worker
- Inspections and consultations
- Safety manuals
- Safety programs and training
- Assistance in complying with OSHA regulations
- Post-accident investigations
- Establishment of drug-free workplace
- Access to the assigned workers comp claims processors
Workers compensation is a state-mandated, “no-fault” insurance system that pays benefits to workers injured on the job. Workers comp needs to be obtained by any employer who has an employee and this coverage needs to be obtained before the employee’s first day of work. There are a few circumstances where employers can be exempt. In return for carrying a workers comp policy, employers receive immunity from civil lawsuits filed by employees over workplace injuries. …Most states have workers comp laws that allow certain types of businesses to choose to be exempt from providing workers comp insurance. If an employer chooses to be exempt from providing the insurance they are still responsible to provide benefits to an injured worker. These employers also remain exposed to civil lawsuits brought by employees who are injured during work. Each state will have specific workers comp rules detailing the various classes of workers exempt from workers compensation insurance. If you are required to carry workers compensation and fail to do so, you are exposed to severe civil penalties and fines. The employer can also be liable for the costs of any injuries suffered by employees. Workers compensation insurance can be purchased through the private market where companies bid on your policy or through some type of state fund. Getting insurance through the state is usually the option of last resort because it can be much more expensive than through the private market. Getting your workers comp insurance through a PEO is getting it through the private market at large volume discount rates.
Five types of workers comp benefits are provided to injured employees. These benefits include:
Tips to help reduce the cost of workers compensation insurance?
- Make sure your employees are correctly classified under the right workers comp code. There can be huge differences in cost between different codes.
- Reduce claims by stressing safety on the job. The number of claims you report and the dollar amount per claims can determine whether your cost increase or decrease.
- Return your employees back to productive work after an injury through a modified work program if they are unable to come back in their full capacity. By doing so you can reduce the losses which impact your workmans comp insurance costs
- Pay for the small “medical only” claims out of your pocket so the injury does not go against your rating.
- Track your open claims diligently and make sure everyone is acting in your companies interests.
- Monitor your claims history by asking for your “loss runs” to see where each claim stands and how much they are costing.
How to determine if someone is an Independent Contractor or an Employee
Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor.
There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor,
The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.
Behavioral control refers to facts that show whether there is a right to direct or control how the worker does the work. A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done – as long as the employer has the right to direct and control the work.
The behavioral control factors fall into the categories of:
Type of instructions given:
1->Degree of instruction
Types of Instructions Given
An employee is generally subject to the business's instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work.
When and where to do the work. What tools or equipment to use. What workers to hire or to assist with the work. Where to purchase supplies and services. What work must be performed by a specified individual. What order or sequence to follow when performing the work.
Degree of Instruction
Note: The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker’s performance or instead has given up that right.
Want to know more?
If the business provides the worker with training on how to do the job, this indicates that the business wants the job done in a particular way. This is strong evidence that the worker is an employee. Periodic or on-going training about procedures and methods is even stronger evidence of an employer-employee relationship. However, independent contractors ordinarily use their own methods.