October 20, 2022
With almost 340 million workplace injuries being reported annually, insurance companies should know the answer to the question, "how does workers' comp work?"
Workers' comp and general liability insurance are great assets for an insurance company to offer. The frequency of workplace accidents or illness means employers are always looking for ways to ensure they are covered if something happens to their employees.
Keep reading to find out more about becoming a workers' comp insurance carrier and providing general liability insurance coverage.
If you as an insurer are considering offering worker's compensation but don't know where to start, have a look at the list below. You'll find all the answers to the most important questions about workers comp.
Doing so will help you decide if it is beneficial for your insurance company to offer workers' comp. Read on for a detailed workers compensation breakdown.
Before applying for workers' compensation, you should have a full understanding of what exactly it is. That way, you will know for sure if a person is entitled to it.
Workers' compensation is a kind of insurance that offers money to a worker who has suffered injury or illness due to their job. In some cases, medical care is also offered and paid for depending on whether the employee needs it or not.
Because it is the responsibility of the employer to pay workers' comp insurance, the injured or ill employee will never be excepted to contribute to this payment.
This kind of insurance is regulated by a professional body called the Workers' Compensation Board. They ensure that workers will get everything they're entitled to if they are injured or fall sick because of their work.
If the Board needs to get involved in a pay-out, they will determine how much the employee should get or if they feel they are entitled to a pay-out.
The criteria for deciding if a person should receive workers' compensation are fairly straightforward. If they were injured on-site or due to their work, they can generally make a workers' compensation claim.
The same is true if they are made ill because of your work. This may affect those who work in industrial freezers or harsh weather conditions more, but it is not limited to these kinds of careers.
Those working with dangerous chemicals, such as in a laboratory setting, should also ensure their employer pays workers' comp insurance. It is easy to become ill in this scenario. Insurers offering workers' comp cover should know what kind of careers they may be covering.
This will help the insurer to decide if offering this kind of insurance is of benefit to them.
There may be times when it is more difficult to determine if a person's injuries or illness are due to their job. For example, if an employee is hurt during a company night out while technically off the clock. In this case, they may get in touch with the Workers' Compensation Board to discuss what they are entitled to.
What works well about workers' compensation cases is that neither the employee nor the employer will ever be judged to be at fault. If the injury resulted from a mistake made by the employee, they will not receive less because of this.
Likewise, the employer will not receive blame either. Workers' comp simply exists to ensure the employee gets what they deserve. Because of these faultless criteria, legal help is often not required.
However, an employee may choose to seek legal help simply for advice and guidance. If this is the case, insurers should assess if the employee will try and get more than they may be entitled to. This will allow insurers to act accordingly.
General liability insurance and workers' comp are sometimes used interchangeably. However, there are important differences between the two that you should know if you intend to offer both.
General liability insurance coverage works to protect a business. If a particular business is capable of causing damage, such as a construction business, it is a good idea for this company to have general liability insurance.
Workers' comp, as discussed, works to protect the employees of a business. It can help to save employers from paying out of their pocket if an employee is injured on the job.
As an insurer, it is a good idea to offer both these kinds of cover. Businesses and employers rely on them for protection and are always searching for the best deal on these kinds of insurance.
These kinds of insurance can be used for both workers' comp for staffing and workers comp for construction.
This will simply depend on the level of injury or illness. As the body offering workers' comp, it will be up to you to decide two things.
Firstly, you must determine if the injury or illness was necessarily caused by the employee's work. Sometimes, this is very obvious. For example, if an employee trips and breaks their arm due to poor office organization.
In other cases, this may be more difficult to assess. It will be up to you and your team to decide if the injury was a result of a person's work.
The second thing you will need to decide as an insurance company is how much to pay out. You'll have to keep some specific criteria in mind. For example, if an employee has to stay in the hospital, they may be entitled to have this covered as part of workers' comp.
Another helpful feature of workers' comp is that it takes into account an employee's ability when you return to work. If the illness or injury they suffered is preventing them from earning the same wages as before, they could get a pay-out that covers two-thirds of what they once earned.
Offering workers' compensation insurance can certainly get you more clients as an insurance agency. However, it is important to be aware that workplace injuries do occur often, and you will need to be well prepared for them when an employee makes a claim.
You'll already know that insurance claims can take a long time to process. As an insurance company, you'll have to have time to properly investigate the claim and ensure you feel the employee is entitled to compensation. The leading workers' comp carriers will be able to provide an estimate of when an employee will get their claim.
However, sometimes claims can be settled quickly if the cause of the injury or illness is obvious. This is especially true if it has been captured using security cameras or if there are several witnesses. In this case, it may take just over a month for you to decide to honor an employee's claim.
Most claims do take longer. Some essential tasks must be undertaken before an insurer can pay out, and these can take time. An employee generally won't expect their claim to be settled for at least 4-6 months, leaving you as the insurer plenty of time to decide if they are entitled to one or not.
The best way to settle claims fast and efficiently is to follow the standard procedure carefully and properly. This will not only allow the insurer to assess the claim thoroughly, but it will reduce the risk of any errors.
While this is not usually a concern for insurance companies, some insurers who will wonder about how a claim will affect an employee's career.
You may find that those who wish to claim workers' comp insurance are worried that it will negatively impact their relationship with their boss or co-workers. As a conscientious insurance company, you will be able to reassure them about workers' compensation.
Because no one is made to feel they are to blame during a workers' compensation claim battle, there should be no hard feelings between the parties involved.
This is dependent on the nature of the person or people making the claim. But, as an insurer, you will be able to let them know that claiming workers' comp should not negatively impact their career.
Because more employers are choosing to pay workers' comp insurance, it is a good idea for insurance companies to offer it. Offering workers' compensation insurance will allow you to gain more customers and build your insurance company.
If you've been asking "how does workers' comp work," the list above should tell you everything you need to know. Insurers who are workers' comp carriers know exactly what to offer their customers to get them what they need.
For more information on workers' compensation and the benefits of offering it as an insurer, check out this webpage. You'll be able to learn everything you need to know about workers' comp. You can also get in touch with our customer service team if you have any questions.