Accidents cause injury and, tragically, death. Everyone can understand this sobering concept. However, the fact that accidents happen more often than you would like to believe is a no-brainer for any business. The issue of Workforce Comp is therefore particularly in the foreground of commercial insurance needs.
While the general content of the coverage is familiar to most, there are numerous details that many may not realize. Below, the insurance pros bring you facts about related policies that go beyond the ordinary.
• Workers Comp wasn’t always there. The idea of companies purchasing this type of coverage first became popular when individual states in the United States of America began implementing it as a commercial requirement for industry in 1911.
• In general, this insurance is now mandatory for every company in the USA
• Workers Comp was created to enable companies to protect themselves and their employees from the financial impact – and the negative consequences – of an accident at work.
• Regardless of where the fault lies in an accident at work, this type of insurance covers the damage. It does not matter whether it is a question of dangerous conditions in the workplace or negligence on the part of the worker.
• Workers Comp Benefits are an automatic part of coverage that begins the moment an employee begins working for a company.
• Fraudulent worker’s compensation claims impact business owners, other employees and the entire insurance industry. If caught, scammers face more than a year in prison and other penalties.
• It is in a company’s best interest to maintain a safe workplace so that accidents and resulting damage processes are prevented in the first place.
• Contrary to popular belief, employee compensation is not always set at a standard premium. The associated costs are determined after an analysis of each organization’s payroll, location and business class, and what is known as an experience rating. The Experience Rating evaluates the frequency of occurrence and severity of the associated insurance claims to determine the price of each Worker Compensation Premium.
• When a company purchases its employee premiums from an experienced independent insurance agency that has good relationships with many of the leading insurance companies, there is a better chance of getting a better insurance quote. This is due to the discounts that the affiliated carrier offers to its affiliated agency, which passes the savings on to their customers.
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