A Small Business Owners Guide To Workers Compensation Insurance

1
A Small Business Owners Guide To Workers
Compensation Insurance
2

• If youre the new owner of a business, or of a
  business that has grown to take on a workforce of
  employees, you may want to know more about
  workers compensation insurance.
• What exactly is workers compensation insurance?
• A safe workplace for their employees, is a legal
  and moral obligation for all employers, but
  sometimes accidents simply cannot be avoided, and
  when they do happen, workers compensation
  insurance is there to give coverage.
• Firstly, workers comp ensures that those
  employees who have been injured while at work,
  get the appropriate medical care that they need,
  and compensation for any income lost while they
  were unable to work due to their injuries.

3

• The coverage also protects employers from
  potentially costly lawsuits from employees who
  have had accidents at work.
• Secondly, workers comp insurance affords benefits
  to the dependents of the injured worker should
  they be killed at work, or subsequently die from
  their injuries. Workers also receive benefits
  irrespective of who was at fault in the accident.
• Take note that each state is different when it
  comes to workers comp
• The systems that enable workers compensation, are
  put in place by statutes in each state, and each
  state is governed by state laws and court
  decisions that control the systems, with no two
  states having the same laws and regulations.

4

• Each state will have different formulas for
  determining the amount of benefits an injured
  employee is entitled to, what impairments and
  injuries should be covered by the insurance,
  along with how they are assessed, and how the
  required medical treatment is to be delivered.
  Each state will also dictate whether the
  insurance should be provided by agencies run by
  the state, by private insurance companies, or by
  the state itself. States will also establish
  their own set of rules and guidance as to how
  each should be handled, and how the ensuing
  dispute should best be resolved.

5

• What injuries are covered by workers comp?
• If an injured workers employer has workers
  compensation insurance, then in theory, any
  injury that was sustained while the individual
  was at the workplace or was conducting legitimate
  work- related activities outside of the premises,
  should be covered.
• Apart from injuries incurred during an accident
  while working, acts of terror, workplace violence
  and natural disasters that have harmed an
  employee, are also covered by the insurance.

6

• What benefits does an injured employee receive?
• If a disability is total or partial, is something
  that is taken into consideration when determining
  income replacement benefits. The American Medical
  Association has a list of criteria that may be
  consulted when assessing injuries and an
  individuals capacity to work, and most states
  require that benefits be paid to the worker for
  the duration of their disability.
• Do you need to buy workers compensation
  insurance?
• In most states, if youre a sole proprietor or
  have a partnership, then youre not required to
  have workers comp unless or until, you have
  employees who dont own your business.

7

• If employees are paid on commission, then some
  states will not require employees to be covered
  by workers comp.
• If you have employees who perform services for
  you as the owner or manager of a business, and
  this can include minors and workers who are not
  citizens, then you will need to buy workers
  compensation insurance.
• For more detailed advice and guidance related to
  workers compensation insurance, seek help from a
  professional payroll service who can provide you
  with accurate and up to date information related
  to policies and where you stand in relation to
  the law.

8

• Apollo Payroll is one of the premier small
  business payroll companies in Miami Beach and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll service in Miami and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Coral Gables Miami.