Worker’s compensation insurance was put into effect in Arizona to help protect injured workers. Since Arizona is a no fault state, the worker’s comp insurance does not distinguish who is at fault in accidents that cause work related injuries. It is required for any business that falls under the states’ requirements to carry worker’s comp insurance.
The worker’s compensation insurance is set in place to help you pay your bills if you are injured on the job. The worker’s comp insurance is based on a percentage scale, this means you will only receive a percentage of your weekly paycheck. It will not be as much as you would make while working, but it will help.
In addition to paying you a weekly check, they are also required to pay all you medical bills that relate to the injury. This includes but is not limited to, prescriptions, tests, hospital and doctor bills, until the doctor releases you to go to work. This will help you out during your time of injury.
In addition to paying for injuries, Arizona also requires worker’s compensation insurance to cover occupational diseases. This basically means that if you get a disease known to be caused by chemicals in your workplace, it is covered by worker’s compensation insurance.
You must report the injury to your employer within seven days. You will also need to let them know exactly where the injury happened, who was involved and what time it happened. Your employer has the right to investigate the details of this accident for his worker’s compensation insurance to approve the claim.
Worker’s compensation insurance is a great benefit to any employee and employer. This worker’s comp insurance will help to cover the employer from expensive medical bills and lawsuits from injured employees. It may seem like it is costing the employer a lot of money, but in the long run it will save them money. Once you find the right insurance broker, they can give you all the benefits of carrying worker’s comp insurance.
Worker’s compensation insurance may seem like an unnecessary expense, but it is not. Having a worker’s comp policy will help you protect your business assets. The Arizona state laws have set in place the requirements for covering an injured worker’s medical bills and a weekly paycheck. Worker’s comp insurance will help to avoid any lawsuits or out of pocket expense for injured workers, failing to carry coverage however means that you will foot the bill.
Finding the Right Insurance Broker
Many times the insurance broker you already have in place for your other business insurance will be able to help you establish your worker’s comp insurance. If your current broker cannot help, you will want to do some research to find one that you can work well with. It should also be noted that each insurance company will have a different requirement for a down payment and monthly payments.
A good way to locate a good insurance broker is by asking any friends that have their own business and use worker’s compensation insurance. They can give you first hand advice on who works well for them. Either way, be certain to interview potential brokers, taking the time to select a great broker can save you thousands on your worker’s compensation insurance and subsequent claims as well.
Benefits to You
Having worker’s compensation insurance will protect you from any lawsuit related to an injury or occupational illness involving your worker’s. You may go years without ever using the worker’s comp insurance, but then there may be that one incident that will cost you millions of dollars. One lawsuit could bankrupt the company you have spent years building. Worker’s compensation insurance is a safety net for your company’s assets. If a worker gets injured and you do not have the correct type of worker’s comp insurance, you could be covering the cost out of your business funds, not to mention the lawsuit could take everything you have left.
Worker’s compensation insurance is a must have, especially for small business owners just starting out. Unfortunately there are many people who will take advantage of a small business that does not have any type of worker’s compensation insurance. Because of Arizona’s law stating there is a no fault policy on injuries, you can be held liable for any and all injuries your employees may receive on the job, so failing to carry worker’s compensation insurance would be a big mistake.
As a business owner, you may have noticed that the cost of Worker’s Compensation Insurance has been steadily rising. In recent years, premium increases have risen faster as the recession lingered on, coupled with an increase in doctor’s office visits. Unfortunately, it looks like the cost of a business’s Worker’s Compensation Insurance will probably keep growing so you have to be on the lookout for ways to reduce your costs. The best way to reduce the amount that you pay on worker’s comp insurance is to create a safer work environment because the better history that your workplace has as in regards to injuries, the lower the amount that you will pay for insurance.
The first thing that you need to do in order to reduce the amount you pay for Worker’s Compensation Insurance is to look at the safety procedures in your workplace. First sit with your mangers and create safety policies as well as a safety manual. When necessary, review and update these policies and make sure that your employees know how to follow them. Another way that you can help reduce your premium for Worker’s Compensation Insurance is by focusing on safety; one strategy is to appoint employees to supervise other employees who’s job duties may lead to trips, slips or other injuries.
History and Future
You can find ways to save money on the Worker’s Compensation Insurance by reviewing your previous claims history. Look for patterns which may lead you to high risk areas and potential hazards. Make sure to post signs in high visibility areas such as break rooms and let your employees know ways to avoid workplace injuries. Emphasizing awareness of workplace safety can easily translate into a lower bill for your Worker’s Compensation Insurance as it will eventually lead to a much improved safety record for your company.
As a new business owner it is easy to be overwhelmed by the mountain of things that need to be identified, prioritized and implemented when first starting your business. One of the most prevalent questions that small business owners have is about worker’s comp insurance and what it actually is. Worker’s Compensation Insurance is a protection that you are giving employees when there is a job related injury or illness that may have them disabled for a certain period of time. Worker’s Compensation Insurance also protects you and your company as it may pay any legal fees and settlements in cases when an employee files a lawsuit against you.
Do I Need To Purchase It?
Worker’s Compensation Insurance is not optional; in fact, if you have W2 employees and some cases 1099 contractors, you will need to be covered. The laws and rights that your business is held to is determined by your state. Worker’s Compensation Insurance laws and regulations can be obtained from the Department of Labor, the Department of Industrial Relations, the Department of Insurance, The Bureau of Worker’s Compensation or other related state agencies. By contacting any of the agencies in your state that deal with worker’s comp insurance, you can ensure that laws and regulations are followed and that you know your rights.
What’s In It For Me?
Worker’s Compensation Insurance can assist you in paying for medication, doctor’s visits, diagnostic tests, hospital stays or therapy which would be related to an injury or illness that took place during the job. Worker’s Compensation Insurance will also reimburse your employee for some of the income lost while being away from the job due to that workplace illness or injury. In cases where an employee dies on the job, your policy may also pay the necessary death benefits to the next of kin and some of the funeral expenses.
This article explains things that you can do to reduce the cost of worker’s compensation insurance.
Worker’s Compensation Insurance can be an expensive investment; however, it is not optional as the government requires that every business carry it. The cost of this insurance depends on the company’s Experience Modification. The Experience Modification (Ex Mod) looks at loss history for the company. In other words, the higher the amount lost, the more that you will pay. There are ways to reduce the amount that you pay for Worker’s Compensation Insurance and one of them is to implement what’s called the “Return to Work Program.” The way that you save money on worker’s comp insurance is that it helps you keep your Ex Mod lower.
What Is “Return To Work?”
In order to understand how you can save money on Worker’s Compensation Insurance with the “Return to Work” program, you need to understand what the program actually is. First of all it is also known as Transitional Work or Modified Duty and it is a program that will help your employees get back to work in a quick and safer manner. An example would be an employee who is injured badly enough to not be able to perform their original job duties, but may be capable to do something else in the office like filing or answering phones, so the Worker’s Compensation Insurance is reduced because the employee is back to work sooner.
Setting Up The Program
You should know that the positions which are created in the “Return to Work” which tend to save you money on Worker’s Compensation Insurance should not necessarily be full time. What is needed is that the employee is back to work and earning some money. Some of the companies that can provide you with Worker’s Compensation Insurance will also gladly help you set up the “Return to Work” program. If the insurance carrier you are using currently cannot help you with the creation of the program, talk with your insurance broker, they are a value resource.
Does your business need worker’s compensation insurance? This article will help you decide.