Risk & Business Magazine Nesbit Agencies Magazine Summer 2018 - Page 7

WORKERS’ COMPENSATION Protect Your Business with Workers’ Compensation Insurance W orkers’ compensation (WC) insurance is required for businesses nationwide. The WC statutes are intended to eliminate the need for litigation between the employer and employee when a workplace injury or fatality occurs. Each state has its own set of laws for privately owned businesses regarding the circumstances for receiving benefits, the duration of benefits, and extent of benefits that a worker may receive. COVERAGE BENEFITS BOTH THE EMPLOYER AND EMPLOYEE Businesses of any size can protect themselves and their employees with workers’ compensation insurance. This type of insurance can save small businesses in particular from devastating financial losses due to job-related injuries. It is estimated that the average workers’ comp claim is over $36,000. For a start-up operation, this can be a catastrophic financial event. It is not unheard of that a small business had to shut down operations due to its inability to pay for an injured worker’s claim. Employees, on the other hand, are also protected. They have the assurance that if they have an injury on the job, their health and well-being are going to be protected. Employees who are not protected by workers’ comp can become injured, and if they lack W COM ORKERS PENS ’ ATIO N health insurance altogether, this can be life threatening for them. TYPICAL COVERAGE OFFERED BY WORKERS’ COMPENSATION POLICIES The typical policy will cover employers/employees for injuries an employee sustains on the work premises or anywhere the employee is acting within the scope and course of his or her employment. A common claim is death caused by traffic accidents that took place while the employee is in a vehicle for work purposes. It does not matter whether the employee was driving a company vehicle or the employee’s own vehicle. However, no coverage is available while an employee is driving to and from work. Loss of wages is covered for the duration of the injury before the employee returns to work. Some states have a limit on the number of weeks the employer must cover the employee. In the event of an employee’s death, workers’ compensation will cover funeral expenses and provide benefits to the deceased worker’s family. One of the most often asked questions is, ”How many employees need to be working in a business before the state requires the owner to buy workers’ comp insurance?” The answer varies by state and, in some cases, by the type of business . In most states, however, businesses that have at least one employee are required to carry this type of insurance. Are you concerned with protecting your business from liability due to workplace injuries? Talk to one of our experienced professionals and find out how you can safeguard your future and that of your business with the right workers’ compensation policy. Get in touch with us at Nesbit Agencies today. + Jeff Staloch has over 11 years of experience in the insurance business, primarily focusing in the areas of commercial risk management and agri-business. Jeff currently works closely with his team at Nesbit Agencies to help develop risk management plans for the manufacturing, construction and agriculture industries. Jeff’s favorite part of his job is helping his clients manage risk so their business can thrive. He can be reached at jstaloch@nesbitagencies.com or 507-625-5558 BY: JEFF STALOCH NESBIT AGENCIES 7