Workers’ Compensation Insurance

It also provides death benefits to dependents of employees killed from a work-related accident. Workers Compensation systems are different in every state. It is critical for employers to obtain coverage in EVERY state where you have employees or sub-contractors working on your behalf.

Employers are required to do the following to comply with workers compensation insurance laws:

• • Employers are required to provide coverage for their employees and are held liable for all injuries suffered by employees while they are on the job.
  • Pay premiums and provide the carrier with audit payroll numbers.
  • Provide a safe environment.
  • Notify the carrier as soon as possible after an injury.

Your workers compensation insurance premium is based on a rating your company has, which is based on payroll, averages for your industry and claims experienced over a three-year period. Claims have a direct impact on this experience modification factor (mod), which can significantly increase your premiums. There are many things that companies can do to lower their workers compensation costs, such as:

• • Review your insurance policy with your agent to make sure that all job classifications and payroll estimates are correct.
  • Make changes to improve workplace safety and reduce unnecessary exposure to injuries & avoid accidents. A good claims history will reduce your modification factor and overall costs.
  • Create a modified duty program at your organization to help injured employees return-to-work sooner. Under these programs, employees are assigned duties that they can physically complete while they recover. The most successful return to work programs incorporate speedy, quality medical care and assistance to reduce emotional stress after an accident.