Corey Dargan: Hi! I am Corey with Wells Fargo and Company. According to a study by the National Association of Insurance Commissioners, although workers' compensation insurance is required in all states in sub Texas, only 59% of small businesses with fewer than 20 employees have it.
This important coverage provides income and medical benefits to employees who are injured on the job or while performing job related task while off on the premises. In exchange the injured employee is prevented from suing his or her employer. So this type of coverage can really protect your employees and your business.
Specifically, workers' compensation coverage includes financial compensation for medical expenses, including medication and prescribed therapies. Rehabilitative care for injured employees, a portion of the insured employee's income loss during the period they are unable to work.
Compensation for any permanent injuries add benefits to survivors or workers who are fatally injured on the job. And just as requirements for workers' compensation insurance vary from state to state, so do premiums.
But wherever you live, there are simple ways to reduce your premiums. Compare policies and rates for multiple companies. Implement a workers' safety or risk management program and give accurate and up to date information about your business and number of employees.
Did you know that all those standalone workers' compensation insurance programs have been the standard for years? Recent improvements in payroll processing now allow businesses the option to pay the workers' compensation insurance premiums when processing their payroll.
This pay as you go option often helps eliminate both premium down payments and year end audit adjustments and can help improve cash flow. Not sure about the coverage of the future business, because workers' compensation insurance requirements vary from state to state, working with an experienced insurance agent who is familiar with your state specific regulations will help make sure your business and your employees are protected.