Worker's Compensation Insurance Assumptions To Avoid
Posted on: 1 November 2021
Workplace accidents can be extremely damaging and costly incidents. To protect businesses and workers from the expensive costs that treating workplace injuries can require, worker's compensation insurance is often mandated for businesses to carry.
Assumption: You Have To Buy Worker's Compensation Insurance From The Government
There are many states that will provide businesses with the option of buying worker's compensation coverage from a state agency or a third-party provider that is authorized by the state. However, this is not the only option that a person can choose for providing their businesses with this coverage. If you are deciding to purchase worker's compensation from a private provider, it is important to make sure that you choose a policy that will meet at least the legally obligated coverage amounts. While this is the amount of coverage that your business may be mandated to carry, it can be worthwhile to choose a policy that actually provides far more coverage as it will offer enhanced protection in the event that an accident is particularly costly.
Assumption: There Is Little Difference Between Various Worker's Compensation Policies
An assumption that can be especially common when it comes to worker's compensation coverage is that there is little difference to the various policy providers that may service your area. In reality, there can be major variations in the amount of coverage that these plans offer and the steps that will need to be taken when filing a worker's compensation claim. Lastly, the number of employees that are covered under these policies can be a factor that you will need to consider and regularly update. Otherwise, your company could find itself underinsured for the size of the workforce that it maintains.
Assumption: A Worker's Compensation Claim Will Require A Disruptive Investigation
After an accident, your worker's compensation insurance policy will have a number of steps that you are supposed to take. For example, some of these policies will often require a drug test to be administered shortly after the incident. However, the process of filing one of these claims will be relatively easy for your managers to do as long as they have been familiarized with the rules for the policy. Due to the potential issues that mistakes can create, it is important to conduct regular training sessions with your managers so that they are familiar with the steps to take. Without these frequent training sessions, individuals may forget the exact details of the process for filing a claim, which can lead to a higher risk of mistakes occurring.
Contact a local insurance provider to learn more about worker's comp insurance.
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