Insurance Insights

Small business owners who have employees are required by state law in many states to maintain workers compensation coverage. In some states, an employer who has no Employers Liability Insurance can be shut down by health and safety officials. Workers compensation coverage is provided in exchange for a mandatory relinquishment of an employee’s right to sue her employer for a tort of negligence. Medical care, death benefits, temporary or permanent disability benefits, and vocational rehabilitation services encompass the covered areas of workers’ compensation benefits.
There are two main types of workers compensation coverage, and both are needed in a complete employment liability protection package. They are Workers Compensation Insurance and Employers Liability Insurance.
Workers Compensation Insurance. As its name implies, this type of insurance provides compensation to employees who may have suffered an injury associated with work or an occupational-related illness. Keep in mind that the employer is liable for injuries or illnesses suffered by an employee if developed during work, according to most state worker’s compensation laws. By having this type of insurance, offered as Part One, employees receive monetary payments for their medical cost and also for some portion of their lost wages from the insurance company — with the intent of avoiding litigation claims. State laws vary, and some states may limit the amount of recovery injured employees receive, which helps to protect employers.
Employers Liability Insurance. Another integral part of Workers Compensation coverage is Employers Liability Insurance, which provides protection against litigation suits (filed by the employee, employee’s direct family members or relatives, or third parties) due to injuries or illnesses associated with employment. Typically offered under Part Two of a workers compensation policy, Employers Liability Insurance provides additional coverage.
Some Workers Compensation coverage policies have provisions to cover injured employees in other states besides the state in which the business operates. For businesses that require employees to travel to other states, these provisions are an important consideration for the small business owner who sends his labor force out in the field in another state.
Although standard workers compensation insurance benefits are set up by each state, a small business owner can select the amount of Employers Liability coverage that suits his company’s needs.

Workplace accidents aren’t limited to large companies or industries that are prone to accidents, like the construction industry. Medical emergencies or potential health care situations can occur in practical any workplace, at any time. These workplace accidents have the potential to cause minor or serious injury, or worse — a fatality.
When you have a small business, you have a responsibility to provide your employees with a safe and healthy place to work that is reasonably void of occupational hazards. In fact, it is required by the Occupational Safety & Health Administration (OSHA). However, because it is unrealistic to not expect workplace accidents to happen, OSHA requires employers to provide first aid and medical supplies and personnel commensurate with the workplace hazards.
It’s important to note that the detailed medical and first aid program requirements are based upon the circumstances of the employer and workplace. Standards are set forth for general industry, and for specific industries, such as marine terminals, longshoring, construction, and shipyard industries.
Beyond workplace safety policies and procedures, it’s prudent to have a first aid kit in the workplace. Supplies in a first aid kit can help provide initial and immediate attention to a person who is suffering from an injury or sudden illness before professional emergency medical attention arrives at the scene. Perhaps in very extreme cases, a quick first response can mean the difference between life and death.
Sufficient quantities of supplies and type of equipment, such as bandages or automated external defibrillators (AEF) should be readily accessible. The first aid kit contents should be reviewed regularly to ensure supplies are sufficient and not expired. Employers should assign a specific person to manage the workplace first aid safety kit.
OSHA’s best practices for workplace safety also include assigning first-aid providers who is trained to provide immediate emergency medical care before emergency medical care is available.  These providers should receive first-aid training that is suitable for the types of injuries or illness that may happen. First aid training course should be provided by nationally recognized or private educational organizations, such as American Red Cross, American Heart Association, or the National Safety Council, to name a few. The assigned first-aid providers should receive periodic refresher courses.
In 2010, over 4,500 fatal workplace injuries were recorded, according to the Bureau of Labor Statistics. These bare statistics alone demonstrate the importance of having a solid workplace safety program in your small business.

If you’re a business owner with employees, you’re no stranger to worker’s compensation insurance policies. Workers compensation exists as a way for you to provide your employees with benefits in the event of a work-related illness or injury. What you may not be aware of, however, is that workers’ compensation also can cover injuries that did not occur on-the-job and other special circumstances. While the laws regarding what is covered by workers’ compensation vary by state, the overall accepted conditions are similar in most states. When dealing with these special circumstances, it’s recommended that you speak to an attorney who has experience with workers’ compensation claims.
Preexisting Conditions

Worker’s compensation is a type of insurance that protects the employee from medical costs and income loss as a result of work-related injury or illness. Most states in the US require employees to be covered by worker’s compensation, though the specific guidelines for worker’s comp vary slightly in each state. You will find that worker’s comp provides you with a multitude of benefits in the case of an occupational illness or accident occurring in the workplace, but there also some things you should know about the insurance. The following is a list of the most important factors of worker’s comp.
Basic Facts about Workers Compensation Employees Should Know

Workers compensation is recommended as protection and coverage for your employees. In most states it is required of all employers. Workers compensation will offer medical coverage and payroll assistance for employees who receive work-related illnesses or injuries. As an employer, if you have a long list of claims, there are some practical ways to reduce workers compensation claims.
1) Perform employee background checks and drug screening. Reducing workers compensation claims can start as soon as when you’re making hiring decisions. Performing a background check and drug screening of job candidates will give you an idea of individuals that might not be suited. Some people have a history of workplace accidents, which may point to neglecting proper safety precautions.
2) Inform and train employees on workplace safety. Workplace safety is one of the most efficient ways to reduce workers compensation claims. Be sure you have a safety program in place that will educate and train your employees on safety precautions. This includes having a safety manual with a list of your safety procedures, how to response to accidents, and incentives for employees who show initiative and prove to follow safety protocols.
3) Inspect equipment and working environment. On a regular basis, a qualified person should be inspecting your work environment, as well as the equipment that is used on a regular basis. During inspections, issues with equipment or unsafe work environments can alert you to changes that will prevent accidents and workers compensation claims.
4) Use ergonomic office equipment and furniture. For employees with office and administration duties, injuries can occur over time from repetitive motions. Prevent these workers compensation claims by providing them with ergonomic furniture and equipment. This includes chairs with proper adjusting capabilities, tables, mats, keyboards and other equipment.
5)  Provide protective equipment. Many work-related accidents can be prevented with the proper safety precautions; this includes protective equipment. Provide your employees with everything they need for a safe work environment, including gloves, helmets or goggles. Other safety equipment might be helpful depending on the type of business you run.
6) Maintain good records of accidents. Include responding to accidents immediately. You should always keep records of any work-related illnesses or accidents that occur at your company. This includes full details of the accident, who was involved, and the response time. The records can be used to improve the safety of your environment and to train employees on proper response time.
7) Create a solid back-to-work plan following a workers compensation claim. When an employee goes on disability leave due to a work-related injury, it is often difficult to keep in touch with them and get update on how they’re recovering. In order to reduce their worker’s compensation claims, it helps to have a plan for when they will return back to work. These programs help minimize the amount of time employees take off during recovery.

Offering paid sick leave to employees reduces the amount of workplace injuries, according to a recent study by the National Institute for Occupational Safety and Health (NIOSH).
The study, which was published in the American Journal of Public Health, found that a group of 38,000 working adults were 28% less likely to have a workplace injury if they had paid sick leave. With the potential financial savings, this reduction in non-fatal workplace injuries is good news for small business employers.
As part of the study, NIOSH examined the number of workplace injuries compared to employees with paid sick leave. They also looked at industries with a higher risk of workplace injury including construction, health care, manufacturing, and agriculture. Workplace injuries in these professions range from severe hand and finger accidents in manufacturing plants to bodily injuries in agriculture and construction industries.
“From these results we concluded that introducing or expanding employee access to paid sick leave might help businesses reduce the incidence of occupational injuries. This could, in turn, reduce costs to employers. To our knowledge, this is the first U.S. study to examine this issue empirically,” said  senior service fellow for NIOSH, Abay Asfaw, Ph.D., senior scientist for NIOSH, Regina Pana-Cryan, Ph.D., and the NIOSH deputy associate director for Science, Roger R. Rosa in a statement about the study.
One theory for the decrease in workplace injuries is this: when an employee is having an off day, he will call in sick and use his paid leave. Without paid sick leave benefits, employees are likely to go to work and the lack of alertness or feeling sick leads to accidents. It is no surprise, then, that employees showing up for work when they feel ill or are suffering from pain lose concentration and have reduced productivity. Offering paid sick leave also enables employees who have illnesses, like a cold or the flu, an opportunity to call in sick. This prevents the illness from spreading to other employees, thus minimizing the loss in productivity from other employees getting sick.
The NIOSH study follows the results of data collected between 2003 and 2008, which proved 43% of private-sector workers were not offered paid sick leave. NIOSH examined the comparison between occupational injuries and available paid sick leave and are now confident that offering this benefit is an advantage to the employers as well. Companies now have a bigger incentive to offering paid sick leave.

While many business owners invest in Workers’ Compensation Insurance to protect their employees while on site, results from a study conducted by the National Council on Compensation Insurance (NCCI) revealed traffic accidents are a leading cause of high-severity workers’ compensation injuries.

Protecting your brand as well as your employees should be made a priority when insuring your small business, and having workers’ compensation insurance is not an option with regulations in place by state law. However, it is important you understand the basics of the workers’ compensation system when investing in the proper amount of coverage.

As a small business owner, there are many tasks that you will likely complete on your own until you are able to expand. One thing you will need to do if you lack a human resources employee to conduct the hiring process when necessary. While this may seem fairly simple, as you will known better than anyone the type of person who will benefit your company, it is important to keep your small business insurance plan in mind.

Providing your customers, clients and employees a safe work environment should remain a priority as your small business grows, but with success often comes the need for a larger worker’s compensation insurance plan. As you hire more employees for your business, you will need to up your policy, but there are some ways you can reduce your worker’s compensation insurance premium.