It’s important to understand workers’ compensation laws in your state, as both an employer and an employee. Workers’ compensation insurance can help protect your business and employees in the event of falling on ice, suffering injuries while moving furniture in the laundromat, car accidents during laundry deliveries and more.
Here are the 10 most frequently asked workers’ compensation questions:
1. What is workers’ compensation?
Workers’ compensation insurance helps protect businesses and their employees from financial loss when an employee is hurt on the job or gets sick from a work-related cause. Workers’ compensation is also known as workman’s comp, workman’s compensation and workers’ comp. These terms all mean the same thing and help protect workers from the potentially devastating costs of work-related injuries. It also helps protect employers from potential damages that could cripple a business based on workers’ comp claims.
2. What does workers’ compensation cover?
Generally, workers’ compensation insurance helps cover medical expenses, lost wages and ongoing care costs – as well as funeral expenses, if an employee is hurt, becomes sick or dies as a result of a work-related accident or illness.
CLA Insurance understands the industry and will work with you to make sure you and your employees have ample coverage.
3. What is not covered by workers’ comp?
This varies from state to state and is typically determined by state laws. Here are a few examples of what most workers’ compensation plans do not cover:
- Injuries received during a fight that an employee started
- Injuries an employee sustains due to being intoxicated in the workplace
- Injuries an employee suffers intentionally
- Emotional injuries that are not accompanied by a physical workplace trauma
4. Who pays for workers’ compensation benefits?
Employers who don’t pay for benefits typically purchase workers’ compensation insurance to cover the benefits for employees. Most states require businesses to carry workers’ compensation insurance, with the exception of Texas and New Jersey. In those states, coverage is elective.
Employees are not responsible for paying for workers’ compensation benefits. The cost of this coverage varies greatly depending on many factors, including:
- State laws
- Business size
- Type of work employees do
- On-the-job risks
5. What should an employee do if hurt on the job?
If employees are injured on the job, they should report the injury to their supervisor immediately. When the injury is reported, the report should include the date, time and circumstances of the injury. Each state has different requirements about when an injury should be reported, but it’s always best to report the injury as soon as it happens.
Job-related illnesses that worsen over time should be reported as soon as a diagnosis has been obtained by the employee, or as soon as he or she learns the injury or illness is related to the job.
6. How do I file a workers’ compensation claim?
Filing a workers’ compensation claim as soon as possible is important. Report a workplace injury or illness if:
- The injured person is an employee of your business
- The employee became sick due to his or her work
- The employee gets injured because of job-related duties
- The employee gets hurt in the workplace
Make sure your employees get proper medical treatment if they’re injured on the job. If needed, call an ambulance or take them to the emergency room. If their recovery requires time off from work, approve their request.
Before filing a claim, you’ll need to gather some information. The actual information required will vary from state to state. When filing a claim, some general information needed may include:
- Company information (account number and location, policy number)
- Injured employee information (name, date of birth, address, phone number, Social Security number, age, gender, etc.)
- Details of the incident (date of incident, type of injury, exact body part injured, the cause of injury, estimated number of days the employee will lose, anticipated return date, any witnesses, etc.)
Once the necessary information is collected, you should file the claim with your insurance company as soon as possible. This process can differ depending on the state in which your business operates. Some states may impose a window of time that business owners have to report the matter to their workers’ compensation insurance carrier. For example, New York requires reports to be filed within 30 days.
7. How does workers’ compensation insurance work?
The workers’ compensation insurance helps cover wages and medical benefits if an employee suffers a work-related injury or illness. The goal is to get employees healthy and back to work as soon as possible.
The coverage gives employees access to experienced professionals at every step of their recovery.
8. If an employee is receiving workers’ compensation benefits, is he or she eligible for disability, unemployment or Social Security benefits?
Employees receiving workers’ compensation income benefits are not automatically ineligible for disability, unemployment or Social Security benefits. One thing to note is the number of benefits due under other programs may be affected by workers’ comp benefits. Your company’s benefits office should be contacted for specific information regarding eligibility for long-term disability and unemployment insurance benefits.
9. Do I have to have workers’ compensation insurance?
In most states, any employer with one or more employees is required to carry workers’ compensation insurance. Texas is exempt from this. Large employers may insure themselves, but they must apply with their state and meet strict self-insurance requirements.
It’s important to note that not all workers must be covered by this type of insurance. For example, workers’ comp doesn’t typically cover independent contractors, domestic workers in private homes or volunteers. Some states also exclude seasonal workers when the work they do is not part of the employer’s regular business or profession.
The Coin Laundry Association has partnered with Associated Insurance and Risk Management Advisors to create CLA Insurance to insure members’ laundromat businesses. CLA Insurance understands your insurance needs and has continued to provide a stable and educated business model, which clearly demonstrates longevity and loss control.
10. How do I get workers’ compensation insurance?
Many factors could play a role in determining the coverage you need and how much you will pay for workers’ comp. Here is some information you will need to know before buying a policy:
- The number of employees who will require coverage
- The number of employees at your business
- The type of work the employees will be doing
- Your payroll size
Ryan Klinger, an account executive at Associated, is your personal insurance advocate. Ryan, along with his team, is here to help you get the best coverage for your laundry business and employees. If any employees are injured or sick due to work-related causes, you can rest easy knowing they will have access to claims specialists and programs aimed at getting them recovered and back to work as soon as possible.
To request a free quote, contact Ryan at [email protected], or call (800) 346-8424 or (708)305-0343.
Source: The Hartford
