Accidents cause injuries and tragically, even death. Everyone can comprehend that sobering concept. The fact that accidents occur more often than you would like to think, though, is a no brainer for any business. The topic of workers comp, therefore, is notably on the forefront of commercial insurance needs.
While the general gist of the coverage is known to most, there are numerous details surrounding it that many may not realize. Below, the insurance professionals bring you facts about related policies that are beyond the usual.
• Workers comp was not always around. The idea of businesses acquiring this kind of coverage only became familiar when individual states in the United States of America started to implement it as a commercial requirement for industries in the year 1911.
• Generally speaking, this insurance comp is now mandatory for every business in the U.S.
• Workers comp was created so that businesses can protect themselves and their workers from the financial impact of an accident that occurs within the workplace – and its negative consequences.
• Irrespective of the where the fault lies in a work-related injury, this type of insurance covers the damages. It makes no difference if it is because of dangerous conditions at the workplace or negligence of the employee.
• Workers comp benefits are an automatic part of the coverage that begin the instant an employee starts working at any company.
• Fraudulent workers comp claims affect business owners, other employees and the entire insurance industry. If caught, fraudsters can face over a year in prison, along with other penalties.
• It is in a company’s best interest to maintain a safe workplace so that accidents and their ensuing claim processes will be prevented in the first place.
• Contrary to popular belief, workers comp is not always set at a standard premium. Associated costs are set after an analysis of the individual organization’s payroll, site location and business class as well as something called an experience rating. The experience rating assesses incidence frequency and gravity of related insurance claims to determine the price tag of the individual workers comp premium.
• If a business acquires its workers comp from an experienced independent insurance agency that has a good relationship with many of the top insuring companies, there is a better chance in getting a better policy quote. This is due to the discounts the related carrier will offer its associated agency that passes the savings on to its clients.