Accidents lead to injuries and, tragically, even death. Anyone can understand this sobering concept. The fact that accidents happen more often than you might think is a given for every company. The issue of workers’ compensation is therefore particularly at the forefront of commercial insurance needs.
Although the general gist of the reporting is familiar to most, there are numerous details that many may not be aware of. Below, the insurance professionals will provide you with facts about relevant policies that go beyond the usual.
• Workers’ compensation did not always exist. The idea of companies purchasing this type of coverage did not become popular until individual states in the United States began implementing it as a commercial requirement for industry in 1911.
• In general, this insurance coverage is now mandatory for every company in the USA
• Workers’ compensation insurance was created to help companies protect themselves and their employees from the financial impact of a workplace accident and its negative consequences.
• Regardless of who is at fault in an accident at work, this type of insurance covers the damage. It doesn’t matter whether it’s dangerous conditions in the workplace or negligence on the part of the employee.
• Workers’ compensation benefits are an automatic part of insurance coverage and begin as soon as an employee begins working for a company.
• Fraudulent workers’ compensation claims impact business owners, other employees and the entire insurance industry. If fraudsters are caught, they face other penalties including over a year in prison.
• It is in a company’s best interest to ensure a safe workplace so that accidents and the resulting claims processes are prevented in the first place.
• Contrary to popular belief, employee compensation is not always set at a standard premium. The associated costs are determined after an analysis of the individual organization’s payroll, location and business class, as well as a so-called experience assessment. The experience rating evaluates the frequency and severity of associated insurance claims to determine the price of individual employee compensation.
• If a company purchases its workers’ compensation from an experienced independent insurance agency that has good relationships with many of the top insurance companies, it has a better chance of receiving a better insurance deal. This is due to the discounts each carrier provides to its affiliated agency, which passes on the savings to its customers.
Source by M Wyzanski
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