Workers’ Compensation insurance covers employees’ medical, wage and other financial benefits if they are injured or become ill while on the job. This coverage is required in most states.
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Why Do You Need Worker’s Compensation?
Worker’s Compensation Insurance is a required coverage for any employer in the U.S. The purpose of the insurance is to provide financial protection for employees who become injured, sick, or killed during the course of performing the duties of their job.
How Are The Premiums Determined For Employees?
The insurance premiums are determined individually for each employer based on ratings for their industry, the specific work duties of their employees, the amount of the company’s payroll, and that employer’s work comp claim history. In the event of a legitimate claim, an employee may be entitled to reimbursement for medical expenses, lost time at work, and other damages resulting from the claim; all of which would be covered by an employer’s Workers Compensation Insurance Policy.
Although Worker’s Compensation Insurance is a mandated expense for most employers, it is also an expense over which the employer is able to exercise a lot of control. Employers may implement Risk Management programs that promote safe work environments and safe work habits to minimize injury exposure for their employees.
What Happens If There Is A Claim?
Should a claim occur, employers still maintain a measure of control over the resulting costs through effective return-to-work policies. Minimizing the costs of claims is only a part of an effective Risk Management Plan for an employer.
MHG has found that a comprehensive approach that focuses on providing a safe and healthy work environment for all employees has a much larger impact on lowering both the number and the severity of Worker’s Compensation Insurance claims. By taking this proactive approach, as well as working with employers to facilitate a quick return to work program following an injury, MHG’s clients experience the financial benefit of lower premiums and the greater benefit of a safe and productive work environment.