Protecting Your Employees and Your Business

Your employees are one of your business’s most valuable assets. When a workplace injury or illness occurs, the consequences can extend beyond the employee to affect your operations, finances, and reputation.

Workers’ Compensation Insurance is designed to provide benefits for employees who experience covered work-related injuries or illnesses while also helping protect eligible employers from certain related claims.

At SecureWay Insurance, we help business owners understand workers’ compensation coverage and the responsibilities that may apply to their business.

WHAT IS WORKERS’ COMPENSATION INSURANCE?

Workers’ compensation insurance generally provides benefits to eligible employees who suffer covered work-related injuries or illnesses.

Depending on the applicable law and policy, benefits may help with:

• Medical treatment

• Rehabilitation

• A portion of lost wages

• Disability benefits

• Certain vocational rehabilitation services

• Death benefits for eligible dependents in qualifying circumstances

Workers’ compensation requirements and benefits vary by state, industry, business size, and employee classification.

WHY WORKERS’ COMPENSATION MATTERS

A workplace accident can happen even when a business has strong safety procedures.

An employee could:

• Slip and fall

• Suffer an injury while operating equipment

• Develop a work-related illness

• Hurt themselves while lifting materials

• Experience an injury while performing job duties

Without appropriate coverage, a workplace injury can create substantial financial and administrative challenges for a business.

Workers’ compensation helps provide a structured way to address covered workplace injuries while supporting eligible employees.

WHAT DOES WORKERS’ COMPENSATION COVER?

Medical Expenses

Workers’ compensation may help pay for eligible medical treatment resulting from a covered work-related injury or illness.

This may include:

• Doctor visits

• Hospital care

• Prescription medications

• Diagnostic testing

• Surgery

• Physical therapy

• Other eligible medical treatment

Lost-Wage Benefits

When a covered workplace injury prevents an employee from working, workers’ compensation may provide partial wage replacement according to applicable law and policy provisions.

The amount and duration of benefits vary by jurisdiction and circumstances.

Disability Benefits

Depending on the severity and circumstances of a covered injury, an employee may qualify for temporary or permanent disability benefits under applicable workers’ compensation laws.

Death Benefits

If an employee dies as a result of a covered work-related injury or illness, eligible surviving dependents may receive certain benefits under applicable law.

WHO NEEDS WORKERS’ COMPENSATION INSURANCE?

Workers’ compensation requirements vary significantly across the United States.

Depending on the state and circumstances, coverage may be required for businesses with employees, while certain businesses or workers may qualify for exemptions.

Businesses that may need to consider workers’ compensation include:

• Construction companies

• Restaurants

• Retail businesses

• Manufacturing companies

• Warehouses

• Transportation companies

• Contractors

• Professional service businesses

• Healthcare organizations

• Technology companies

• Small businesses with employees

Business owners should verify the specific requirements that apply in their state and industry.

WORKERS’ COMPENSATION FOR SMALL BUSINESSES

Small businesses may have fewer employees, but a single workplace injury can still have a significant impact.

Workers’ compensation can help small businesses:

• Meet applicable legal requirements

• Provide benefits to eligible injured workers

• Reduce the financial impact of covered workplace injuries

• Demonstrate responsible risk management

• Protect business operations

Even if you operate a small company, don’t assume your business is exempt without checking the rules that apply to your location.

WHAT TYPES OF WORKPLACE INJURIES CAN OCCUR?

Workplace injuries can happen in many different environments.

Examples include:

Slips, Trips & Falls

Employees may suffer injuries from wet floors, uneven surfaces, stairs, or other workplace hazards.

Equipment-Related Injuries

Machinery, tools, vehicles, and other equipment can create risks when used improperly or when accidents occur.

Lifting & Repetitive Injuries

Repeated movements or lifting heavy objects may contribute to certain work-related injuries.

Exposure-Related Illnesses

Employees in certain industries may face risks associated with chemicals, materials, noise, or other workplace conditions.

Vehicle-Related Accidents

Employees who drive as part of their work may face additional workplace risks.

WORKERS’ COMPENSATION & EMPLOYEE MEDICAL CARE

When an employee suffers a work-related injury, timely medical attention can be important.

Depending on applicable law and the workers’ compensation system, the process may involve:

1. Reporting the workplace incident.

2. Obtaining appropriate medical evaluation.

3. Determining whether the injury is work-related.

4. Filing the appropriate workers’ compensation claim.

5. Reviewing eligibility for applicable benefits.

6. Providing approved treatment and benefits according to applicable rules.

Employers should follow their state’s reporting requirements and insurer’s claims procedures.

EMPLOYER RESPONSIBILITIES

Workers’ compensation isn’t simply about purchasing a policy.

Employers may have responsibilities involving:

• Maintaining required coverage

• Reporting workplace injuries

• Maintaining appropriate records

• Following workplace safety requirements

• Cooperating with claims investigations

• Posting required workplace notices

• Providing employees with information about reporting injuries

The exact responsibilities depend on applicable state and federal requirements.

EMPLOYEE RESPONSIBILITIES

Employees also generally have responsibilities after experiencing a workplace injury.

These may include:

• Reporting the injury promptly

• Providing accurate information

• Following medical instructions

• Attending required medical appointments

• Completing required documentation

• Cooperating with the claims process

Specific requirements vary by state and workers’ compensation system.

WORKERS’ COMPENSATION VS. GENERAL LIABILITY INSURANCE

These policies address different risks.

Workers’ Compensation Insurance

Generally addresses covered work-related injuries and illnesses involving employees and provides benefits according to applicable workers’ compensation laws.

General Liability Insurance

Generally addresses certain third-party claims involving:

• Bodily injury

• Property damage

• Personal injury

• Advertising injury

A business may need both types of coverage because they serve different purposes.

WORKERS’ COMPENSATION VS. EMPLOYER’S LIABILITY

Workers’ compensation provides benefits to eligible employees for covered workplace injuries and illnesses without requiring the employee to establish employer negligence in the same way as a traditional lawsuit.

Employer’s liability coverage, which may be included within a workers’ compensation policy, can address certain lawsuits brought by employees or their families alleging employer responsibility for workplace injuries.

The exact protection depends on the policy and applicable law.

WHAT WORKERS’ COMPENSATION GENERALLY DOES NOT COVER

Workers’ compensation isn’t designed to cover every type of injury or situation.

Depending on applicable law and policy terms, coverage may not apply to circumstances such as:

• Injuries unrelated to employment

• Certain intentionally self-inflicted injuries

• Injuries occurring while committing certain misconduct

• Certain situations involving intoxication or drug use

• Injuries outside the scope of employment

• Other circumstances excluded under applicable law

Determining whether an injury is compensable depends on the specific circumstances and applicable workers’ compensation rules.

HOW MUCH DOES WORKERS’ COMPENSATION COST?

Workers’ compensation premiums vary from business to business.

Factors that can affect cost may include:

• Industry

• Type of work performed

• Number of employees

• Payroll

• Employee classifications

• Claims history

• Workplace safety practices

• State requirements

• Business operations

A construction company, for example, may have a different risk profile from an office-based consulting firm.

EMPLOYEE CLASSIFICATION MATTERS

Workers’ compensation insurers generally classify employees according to the type of work they perform.

Accurate classification is important because different jobs can carry different levels of workplace risk.

For example, an employee working in:

• An office

• A warehouse

• A construction site

• A restaurant kitchen

• A manufacturing facility

may have a different classification and associated premium than employees performing other types of work.

WORKERS’ COMPENSATION CLAIMS

When an employee experiences a workplace injury, the claims process generally involves several steps.

Report the Injury

The employee should report the incident promptly according to company procedures and applicable law.

Document the Incident

Employers should maintain appropriate records describing what happened, when it occurred, and who was involved.

Seek Appropriate Medical Care

The employee should receive appropriate medical attention consistent with applicable workers’ compensation requirements.

Notify the Insurance Company

The employer should report the claim to the insurer according to the policy and applicable deadlines.

Cooperate With the Process

The employer and employee may need to provide information and documentation during the claims process.

WORKPLACE SAFETY & RISK MANAGEMENT

Insurance is an important part of protecting a business, but preventing injuries is equally important.

Businesses can reduce workplace risks by:

• Providing employee safety training

• Maintaining equipment properly

• Keeping walkways clear

• Using appropriate protective equipment

• Establishing clear workplace procedures

• Conducting regular safety inspections

• Documenting workplace incidents

• Reviewing previous claims for recurring risks

A strong safety culture can help protect employees while potentially reducing workplace disruption.

WORKERS’ COMPENSATION FOR DIFFERENT INDUSTRIES

Construction

Construction businesses may face risks involving heights, machinery, tools, vehicles, and physically demanding work.

Restaurants

Restaurant employees may face risks involving burns, cuts, slips, falls, and repetitive tasks.

Retail

Retail employees may encounter risks from lifting, falls, stocking merchandise, and workplace accidents.

Manufacturing

Manufacturing operations can involve machinery, equipment, repetitive tasks, and other workplace hazards.

Office Businesses

Even office environments can experience workplace injuries involving slips, falls, ergonomic issues, and other incidents.

WHAT BUSINESS OWNERS SHOULD REVIEW

When reviewing workers’ compensation coverage, consider:

Employee Count
How many people work for your business?

Payroll
Is your payroll information accurate and current?

Job Classifications
Are employees correctly classified according to their duties?

Business Operations
Have your services or operations changed?

Claims History
Have previous workplace injuries changed your risk profile?

State Requirements
Are you complying with the workers’ compensation rules applicable to your location?

FREQUENTLY ASKED QUESTIONS

Is workers’ compensation insurance required?

Requirements vary by state, business size, industry, employee classification, and other factors. Check the applicable state requirements before determining whether your business is required to carry coverage.

What does workers’ compensation pay for?

Depending on applicable law, it may provide benefits for eligible medical expenses, partial wage replacement, disability benefits, rehabilitation, and certain death benefits.

Does workers’ compensation cover injuries outside of work?

Generally, workers’ compensation is designed for covered injuries and illnesses arising out of and in the course of employment.

Do small businesses need workers’ compensation?

A small business may still be required to carry workers’ compensation insurance depending on its state, number of employees, industry, and other circumstances.

Are independent contractors covered?

Whether someone is considered an employee or independent contractor can depend on applicable law and the actual working relationship. Businesses should not assume that simply calling someone a contractor automatically excludes them from workers’ compensation requirements.

Does workers’ compensation cover lost wages?

Eligible employees may receive partial wage replacement for qualifying work-related injuries or illnesses according to applicable state law.

Does workers’ compensation cover medical treatment?

Workers’ compensation generally provides benefits for eligible medical treatment related to covered work-related injuries or illnesses.

What should an employee do after a workplace injury?

The employee should generally report the injury promptly, seek appropriate medical attention, and follow the employer’s and workers’ compensation system’s reporting procedures.

PROTECT YOUR TEAM. PROTECT YOUR BUSINESS.

Your employees deserve a safe workplace, and your business deserves protection when unexpected workplace injuries occur.