4 Tips For Choosing The Right Worker’s Compensation Insurance Policy
As much as you can do to provide a safe working environment for your employees, accidents are unavoidable. Investing in a solid worker’s compensation policy is thus the least you could do to protect your company’s bottom line. On that note, let’s discuss some of the things you’ll want to pay attention to when purchasing coverage.
Know Your State’s Requirements
Workers’ comp is legally mandated in most states, but each jurisdiction has unique requirements for different types of businesses. So do your homework before shopping for coverage. Find out what minimums are required for firms in your industry, along with the benefits that your policy is expected to provide to injured workers.
It’s worth highlighting that a workers’ comp policy is only effective within the state it was purchased. If your business operates across state lines, you will need a multi-state policy that complies with the laws in each region.
Know What’s Covered
A typical worker’s comp policy is comprised of two parts:
- Worker’s compensation: Covers injuries sustained at the workplace, plus disorders that might be caused/aggravated by the nature of the job. Worker’s compensation has no limit on the policy amount. Your insurer basically agrees to pay out whatever the law requires — and usually without regard to whose fault led to the accident/injury.
- Employer’s liability: This covers liability claims arising from work-related injuries — lawsuits for issues that aren’t covered by the state’s statutory benefits — up to a specified limit.
Note that, in either case, your policy will only cover injuries and illnesses occurring in the line of duty; you’ll have to purchase general liability coverage if you need more protection.
Create a Safety Plan
Although a good Texas workers compensation policy will provide as much protection as your business needs, it’s still in your best interest to mitigate risk. That means:
- Training employees on how to operate equipment without exposing themselves to injury.
- Requiring workers to be in protective gear at all times.
- Putting in place signage in and around risky areas.
- Ensuring all equipment meets prescribed safety standards, and is properly maintained.
- Conducting regular safety reviews of the workplace environment.
Putting in place such measures will minimize the likelihood of injury, and maybe even save you from claims that aren’t covered under your policy. Your staff will also appreciate the effort you’ve invested in looking out for their safety.
Find a Broker
While you could very well shop for coverage on your own, a good broker can make a huge difference. Brokers work with a wide range of insurance companies, and they’re much more experienced in navigating the landscape. They can therefore help you access plans that you’d otherwise not have found on your own.
Look out for an independent broker who specializes in worker’s comp insurance. They should also be familiar with the relevant laws in each state your company operates. Working with such a broker will help you purchase the coverage you need at the best possible price.