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As a business owner, it’s important to understand the laws for your state’s workers’ compensation insurance. Not following these compensation laws could mean facing hefty fines or even criminal charges.
Workers’ comp insurance helps your employees by giving them the benefits they need to recover from work-related injuries or illnesses. And it helps you because workers' compensation can help cover your employees’ medical bills and lost income if they need to take time away from work to heal.
For example, let’s say your employee gets injured in an accident while using your company car to make a delivery. If you don’t have workers’ compensation insurance and it’s required by your state, you may:
- Have to pay for your employee’s treatment costs out of pocket.
- Face imprisonment. Some states have an 18-month minimum sentence for not having workers’ comp insurance.
- Pay a fine. This can be as much as $100,000 in some states.
- Pay out of pocket for any legal costs if your employee sues your business.
Every state has its own workers’ compensation program and laws, so you should look into what your state workers’ compensation requirements are. In the event of an accident, be sure that you know how workers’ compensation cases work and what your rights are.
Workers’ Comp Rights
Your injured employees have certain workers’ comp rights when it comes to claims. They can:
- File a claim for an injury or illness resulting from their job.
- See a doctor for medical care for their work-related injury or illness.
- Get disability benefits for a permanent injury.
- Appeal a court’s decision that they disagree with.
- Get legal representation from a lawyer.
Laws for workers’ comp aren’t regulated by federal government agencies, like the Department of Labor. Instead, each state has its own bureau that’s in charge of its workers’ compensation laws and regulations. When deciding on the right coverage for your business, be sure to check what’s required in your state.
If you have workers’ compensation questions, we’re here to help. You can call 855-829-1683 and speak with one of our insurance specialists.
Workman’s Comp Rules To Follow
Workers’ comp rules can seem complicated. These tips can help you find the right workers’ comp insurance for businesses.
- Know your risks: Every industry faces different risks. For example, construction workers face more risks than accountants. Learn more about other workers’ compensation industry trends that can impact coverage.
- Learn your state’s laws: Make sure you understand and follow your state’s workers’ comp regulations. This can help you avoid costly fines and possibly jail time.
Call one of our specialists: We can help you get coverage to meet your small business’ unique needs. Contact our workers’ comp team at 855-829-1683.
If it's optional for your small business to carry workers’ compensation insurance, you may still want to consider it. Having this coverage will keep you and your employees covered when the unexpected happens, helping pay for expensive treatment and medical bills. Workplace injuries covered by workers’ compensation can save your business from financial ruin.
When you file a claim, your state’s workers’ compensation board may ask for more information about your employee’s injury or illness. Be sure to respond on time because it helps ensure your claim is processed smoothly. The faster it’s processed, the quicker your employee receives coverage for their medical bills and other expenses.
What Are My Employees’ Workers’ Comp Rights?
One of your employees’ workers’ comp rights is that they’re able to file a claim for their work-related injury or illness as long as they meet your state’s reporting deadlines. You may want to help your employees understand their workers’ comp rights and be sure they know how to file a workers' compensation claim.
The first step in filing a workers’ compensation claim is to collect the right information, such as:
- Your company details, including your account or policy number, location code and parent company name.
- Your employee’s name, date of birth, Social Security number, address and phone number.
- The date of the incident and when it was reported. You can also note who reported the accident and the type of injury your employee has.
When you have your information, call our claims specialists at 800-327-3636 to file the claim. You can also file it online on our workers’ comp claims page.
Are Workman’s Compensation Laws and Regulations Different in Each State?
Every state has unique workers’ compensation programs and laws. It’s important you know what’s required in your state, because workers’ compensation laws by state can vary.
Here are a few states with unique workers’ comp regulations:
- Alabama exempts businesses with fewer than five employees from its workers’ comp laws.
- California requires all employers to have workers’ comp coverage.
- Florida requires all construction companies to have workers’ compensation, including contractors.
- Missouri businesses with more than five employees need workers’ comp insurance.
- Nebraska exempts federal employees, railroad employees, most volunteers and independent contractors from coverage.
- North Carolina requires agricultural operations with 10 or more employees to carry workers’ comp.
- New York penalizes businesses $2,000 for every 10 days that they go without coverage.
Get a Quote for Workers’ Compensation Benefits
Workers’ compensation coverage helps your business and your employees. With coverage, you don’t have to pay out-of-pocket for an employee’s work-related injury or illness. And your employees can get benefits to help them return to work faster.
Be aware that not all insurance companies offer the same workers’ comp benefits. At The Hartford, our workers’ compensation insurance includes:
- A national network of over 1 million physicians to provide treatment for your employees.
- Over 65,000 pharmacies across the country to fill prescriptions with no out-of-pocket expenses.
- Nurse case managers who can help coordinate care and treatment.
- Pay-as-you-go billing to help manage your business’ cash flow by making smaller payments throughout the year.
Get a workers’ compensation quote today. You can also call 855-829-1683 to speak with one of our workers’ comp specialists to learn more about how workers’ comp can help protect your employees.
Last Updated: May 22, 2023
This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.
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