In the US, employers must offer medical and financial benefits to employees who sustain workplace injuries. Legally, employers are required to ensure that their employees are safe at work. Despite this, accidents occur at work, where workers’ compensation comes into play. Many businesses, including Cerity, assist in giving the employer all the necessary information on workers’ compensation insurance.

What is meant by workers’ compensation?

Also known as workers’ comp, Workers’ compensation is a government-required program that offers compensation to people injured or ill at work or as a result of their employment. It acts like a worker’s disability insurance scheme, offering monetary compensation, healthcare services, or both to anyone who gets ill or injured due to their job.

Numerous companies in the US assist employers with purchasing worker’s compensation while also providing them with all the necessary information. These businesses, like Cerity, frequently serve as a knowledge resource for employers who may not be familiar with the entire process. Before making a choice, any firm looking to buy workers’ compensation for its employees should research organizations to gather all the facts.

How does a worker’s compensation work?

If an employee has a work-related accident, they may be eligible for healthcare benefits and, sometimes, a portion of their lost wages. Workers’ comp is a kind of insurance paid by a private insurer, whose premium is paid by each employer.

Who covers the premiums for workers’ compensation insurance?

Employees’ workers’ compensation insurance is not deducted from their paychecks. The employer is required by law to pay it. These laws are set by the state and can vary from one state to another, just as they might with the cost and premium of the insurance.

Do worker’s compensation laws have any exceptions?

Although every state requires businesses and employers to buy workers’ compensation insurance for their employees, certain exemptions are available to companies. The exemptions, like the laws, vary from state to state and may be based on things like:

• The number of personnel.
• The number of hours worked.
• Whether the company is a partnership, an LLC, or a sole proprietorship

An exemption would imply that the hurt worker would not receive any healthcare benefits and would be responsible for covering their medical costs. Additionally, the employer will not be liable for making up any lost wages for the time the employee could not work due to the injury.

Although, as was previously said, every state has its exemptions, a few are listed here for your comprehension. For accurate information on exemptions, it is always advisable to consult official government websites or get in touch with businesses that offer insurance services.

1. Any company in Alabama with four employees or fewer is exempt from purchasing a workers’ compensation plan.
2. Even though Arizona requires workers’ compensation for businesses with just one employee, there are several exceptions, including those for independent contractors, casual laborers, sole proprietors without employees, and staff members who declined to participate in a workers’ compensation program.
3. Like in other states, California requires all employers—aside from sole proprietors and self-insured individuals—to purchase workers’ compensation.
4. Employers in Delaware are free from worker’s compensation if they employ farm laborers or household workers who make less than $750 in cash over three months while employed in a private home.

Wrap up:

Whether you are an experienced employer or a first-timer, it is crucial for everyone to abide by the law. This includes securing worker’s compensation for each employee to ensure their safety and security. Before making a decision, get some assistance if you have any questions or need clarification.