Workers Compensation Insurance
Compensation protects your employees should an injury occur during
the course of employment. Payments are made to the injured party
and can consist of medical payments, loss of wages or therapy.
All states require all employers to carry
Workes' Compensation insurance and each state has individual laws
that must be met.
At the very minimum, Workers' Compensation
insurance policies will cover an employee's medical expenses and
reimburse him or her for some percentage of lost wages.
Almost all states are "open market",
which means the coverage is underwritten by private insurers; and
some states are "closed" or "monopolistic" -
the coverage is underwritten by a state-sponsored fund (ND, OH, WA,
WV, WY). In states that are open, rates can vary between insurance
carriers depending on the type of business the carrier is attempting
to attract. In an open market, the rates for workers' compensation
Employers with one or more employees are
subject to the provisions of their states Disability Benefits Law.
This law provides benefits to employees who may be become disabled
because of injuries/sickness off the job or that may arise from other
conditions such as pregnancy. Payments for these types of benefits
are only allocated for the payment of wages... unlike that of workers’ compensation
which provides payment for medical costs.
Rates for these policies are dependent
on the degree of hazard that each occupation carries. Each occupation
is coded and defined by state laws. Premiums are determined by the
amountof payroll in each occupation code and is subject to annual
audit for verification.