HOW WORKERS’ COMPENSATION INSURANCE WORKS?
INSURANCE IN SOUTH CAROLINA
Change is a part of life. As your life and business change, you need insurance that changes with you. TAiG specializes in creating insurance strategies for individuals and businesses in South Carolina, including West Columbia, Irmo, Lexington, Chapin, and surrounding areas.
HOW WORKERS’ COMPENSATION INSURANCE WORKS?
Workplace injuries have serious effects on any business, sometimes even halting the productivity and reducing the overall morale of the workers. While many employers work hard to put in place the best safety measures and a safe environment in the workplace for their employees, workers’ safety cannot be absolutely guaranteed as accidents can only be minimized and cannot be totally eliminated since they can happen anywhere or at any time.
This necessitates employers to provide protection and compensation for employees who get injured when on the job, as well as themselves, via workers compensation insurance.
This policy serves as a medium to provide financial assistance to workers in need while employers are protected from lawsuits as well. As a result, many states make it mandatory for employers who have hired more than a single employee to carry the workers compensation coverage.
Employers are responsible for maintaining a safe workplace, provide workers compensation insurance for their employees and protect the workers from financial hardship in the event of a workplace injury.
What is Workers’ Compensation Insurance?
Workers’ compensation insurance is a special insurance issued to business owners, which provides them with insurance coverage for the costs of work-related illness and on-the-job injuries to their employees.
It covers workers’ injuries like medical bills, permanent disability, lost wages, rehabilitation, death, physical therapy, loss of future income, and/or cost of new job/occupation training and exposure to hazardous materials.
In case a worker loses his/her life on the job, the program covers funeral expenses and may provide benefits to family left behind by the worker. Essentially, any injury that is sustained on the job itself will most likely be covered.
Who Is Required To Carry Workers’ Compensation Insurance?
Businesses are required to buy workers compensation insurance to protect employers from lawsuits resulting from workplace injuries and to provide medical care and compensation for lost income to employees that are involved in workplace accidents.Who Needs Errors and Omissions Insurance?
What Happens If I’m Uninsured and My Employee Is Injured?
If an employer fails to offer workers compensation insurance, or if he or she files fraudulent papers to avoid paying higher premiums, the result could be disastrous for the business.
His or her employee can sue him or her to obtain the entire cost of medical treatment including pain and suffering. In fact, the employer could be forced to pay higher premiums when he or she finally obtains insurance.
Can I Be Fined For Not Carrying Workers’ Comp Insurance?
Except with very limited exceptions, every U.S. employer is required to purchase workers’ compensation insurance.
An employer who fails to comply with a state’s requirements will trigger economic penalties and possible criminal prosecution by the state.
As an employer or entrepreneur, if you operate without workers’ comp insurance, you run the risk of heavy fines, and possible shut down of your business. You may be liable for fines above $10,000 per worker, as well as an amount equal to any avoided premiums retrospectively for five years.
The consequence of non- compliance is very severe and if you continue to be uninsured even after the date of your conviction, you will commit a separate and further offense for every week you are uninsured.
Is Workers’ Compensation Insurance Necessary if I Don’t Have Employees?
If you own a one-person company, the state you operate may not compel you to maintain workers’ compensation coverage. However, you may be required by your client to carry workers’ compensation insurance.
This is because many states require subcontractors to be automatically covered under the hiring company’s policy in case such subcontractors do not carry their own workers’ compensation insurance.
Are There Benefits of Workers’ Compensation Insurance?
There are several benefits of workers’ compensation insurance, both to employees and employers. Some of these will be highlighted below.
This form of insurance covers medical benefits like payment for doctor’s visits, medication, diagnostic tests, therapy or hospital stays that are directly related to an accident or injury that occurred while the employee was on the job.
Besides, employees are reimbursed for a portion of income lost due to work-related injury or illness. Employers that operate workers’ compensation insurance won’t have to worry about paying those costs out of pocket. In situation where there’s a permanent disability, employees will be adequately compensated by the insurance company.
Workers’ compensation insurance is not limited to workers that are injured while they are on the job or work-related illnesses, but also include those who are involved in road accidents while on business.
This policy also protects employees from financial disaster. This is because the medical costs of treating an injured worker, the lost wages, and other costs associated with it could be extremely burdensome for any small or large business. In fact, these could put their assets in jeopardy.
Employees can also save a lot of money as tax reduction by paying the premiums for the insurance.
Finally, a workers compensation policy gives workers the feeling of being secure and safe in the company. The employer or company benefits in many ways by winning the trust of its employees, making it a mutual benefit for both employers and employees.
How to Obtain the Insurance Coverage?
One of the best insurance companies that specialize in issuing workers compensation policy and creating insurance strategies for individuals and businesses in South Carolina, including West Columbia, Irmo, Lexington, Chapin, and surrounding areas is The Alexander Insurance Group. This organization provides businesses with worker’s compensation insurance, so that they can have peace of mind when it comes to the health and safety of their employees.
If you have employees, it’s an essential part of your business insurance package added to your commercial insurance policy. Talk to the insurance experts at TAiG today and they will ensure that you’re covered. Besides worker’s compensation insurance, TAiG specializes in personal insurance, commercial insurance, cybersecurity insurance, and so much more!
No matter what your insurance needs is, The Alexander Insurance Group is always ready to assist. You can contact The Alexander Insurance Group with insurance questions, concerns about your policy, or get started with TAiG by calling (803) 220-2272.