Workers’ compensation insurance in Kissimmee is a form of insurance that provides different types of wage replacement and medical benefits to any employee who has been injured during the course of his employment. However, in return, the erstwhile employee is legally bound to relinquish all of his rights to sue their employer for negligence in terms of the work environment. Please call us at 407-344-1228, or email us at [email protected] for any insurance needs you may have.
The inevitable trade-off between one hundred percent assured but limited coverage and the employee’s lack of recourse outside the usual worker compensation system is colloquially known as “the compensation bargain”. In the US, individual states get to decide the amount of workers’ compensation insurance in Kissimmee that a typical company must provide to their employees. Some of the common conditions where workers’ compensation insurance may be applied include the following:
- Medical treatment for conditions that an employee may have developed while on the job
- Illnesses, such as emphysema and problems with motor functions
- Injuries or even loss of limbs while an employee works for a company
- Injuries caused at work, especially repetitive motion injuries
- Rehabilitation treatment that might be required so that the employee may return to work
- Any lost wages due to accidents and disease (up to 75 percent of the staff members’ salary)
- Death
- Liability insurance for the company due to any lawsuit filed against it by an injured employee
While many people tend to think of workers’ compensation insurance in Kissimmee, FL, as just another really annoying business expense, the fact remains that offering workers’ compensation insurance can actually protect your business from a lot of undesired litigation in case an employee ends up becoming injured or diseased as a direct result of the nature of his job.
- Example
Mr. Tony Stark works in a hosiery. The fine cotton threads and constant air pollution caused by bits and pieces of cotton fluff has severely impaired his lungs and he has developed a nasty hacking cough. The doctors say that his lungs are now working only at 50 percent, and there is no hope of short-term recovery except complete bed rest. Without access to workers’ compensation insurance in Kissimmee, FL, he will sue the company and the company will not only have to pay all his lost wages during his period of bed rest, but it will also have to cover all its medical expenditure as well as any damages that the court deems fit to grant him.
Barring the state of Texas, every other state requires a company with at least three employees to provide them workers’ compensation insurance or the state itself can provide that insurance. Alternately, a company can be self-issued or can ask a private insurance service to provide workers’ compensation insurance in Kissimmee, FL, for them.
As a general rule, the average cost of workers compensation insurance tends to vary from service provider to service provider as well as the industry. In fact, many high-risk jobs that expose workers to dangerous heights and heavy machinery (such as roofing and construction, for instance) usually carry higher premiums than most office jobs.
In addition, a company’s premium amounts can also increase or decrease as per the number of claims filed by its employees. For example, a company that has had no claims filed against it will get a ‘no claims’ bonus and its premium will be $350 per annum. On the other hand, a company that has the same policy but has filed multiple claims will have to pay an average of $200 every year as a premium for workers’ compensation insurance.
- Workers’ Compensation Insurance: Myths and Tales
There are many myths and legends that are associated with workers’ compensation insurance. Let us check out a few of those and explain why they have no resemblance to actual reality.
- Once the Worker’s Compensation Has Been Paid in Full, The Company Will Not Be Liable Anymore
Just because an employee is ill or injured does not mean he should be completely written off by the company concerned. It is important that the employers stay in close contact with the worker during the initial as well as the recovery phases. This way, the business owner will be in a better position to understand when their worker will be fit enough to return to work. After all, you don’t want your employee sitting at home while he is getting paid, regardless of whoever is making the payments. This is why the company should initiate a return to work program to help reduce the total number of workdays that might be lost due to personal injury or illness. Since your employee is a critically important resource, his absence can lead to a significant drop in productivity. If you have such a program in place, you can see fewer workers’ compensation insurance claims, which will mean a steep drop in your annual insurance premium rates.
- Only Very Large Companies Are Mandated to Carry Workers’ Compensation Insurance
Not true at all. While state laws may vary, in many states, even if you have just one single employee on your payroll, you will still be required by the law to carry workers’ compensation. Again, laws vary by state, but in most states, a business needs to only have one employee to meet the requirement for workers’ compensation. In various cases, minimum coverage requirements will also be dependent on the nature of the business; for example, in the state of Missouri, labor law states that every company that has a minimum of 5 employees must have compensation insurance coverage. However, the requirement for the construction sector are way lower and even a single employee requires the employer to acquire workers’ compensation insurance coverage for their lone employee.
- Workers Compensation Is Inherently Fraudulent
There is a common misperception that almost all workers’ compensation claims are outright scams that are perpetuated in order to make money while sitting at home. The mass media has been fueling these tall claims, but research carried out by the insurance industry itself showed that only 1 to 2 percent of compensation claims may be declared fraudulent.
It is not that there is no fraud at all. But rather, such fraud is extremely rare and the overwhelming majority of the claims (98 to 99%) are real injuries and /or illnesses that the employees have suffered during the course of their employment.
- Filling the 1099 Form Is a Good Way to Avoid Workers’ Compensation Coverage Dues
Some small business enterprises believe that if their employers fill out the 1099 forms, then they will automatically be independent contractors. This means that there will be no reason for them to acquire the mandatory workers’ compensation insurance coverage.
However, here it is prudent to understand that there are very clear guidelines that the person should follow in order to be classified as a fully independent contractor. If the state or the IRS investigators are able to discover that the worker who has been misclassified as an independent contractor is actually an employee of the company, then the business can face very stiff tax penalties or criminal liability. Not acquiring workers compensation insurance in Kissimmee, FL, can actually land you in jail. And you certainly don’t want that.
- Staff May Be Paid for an Injury at Work, Even If It Was Not Their Fault
Of course, workers are not allowed to injure themselves on purpose so that they could collect compensation benefits; however, any injury that occurs within the scope of their individual duties is almost always covered. And yes that also includes carelessness, to a certain extent. However, there are nonetheless many situations that are not covered.
- Example one
John Smith paid no heed to the do not enter sign in a firearms proofing chamber and marched right into one. The resulting sound nearly deafened him, and he was prescribed bed rest for a few months. He will be compensated both in terms of lost wages as well as medical expenses
- Example Two
Adam Chandler drives a forklift in a warehouse. He shows up for work completely drunk and proceeds to wrack a pallet and brings it down on top of his lifter. He also gets injured in the process. However, the alcohol amount in his bloodstream was unacceptably high and he was liable for criminal persecution rather than compensation.
- Staffers Can Collect Compensation Benefits If They Are Injured on the Job but Off Company Property
While the laws vary between the states, generally speaking, any time an employee is injured while executing the tasks assigned in his JD, he will be provided coverage by workers’ compensation insurance in Kissimmee, FL.
- Example One
A courier delivering a parcel for his company is injured in an automobile accident. He is eligible for workers’ compensation insurance due to the fact that this is exactly what he has been hired to do, i.e., deliver parcels.
- Example Two
A salesman slips and falls down the stairs of a hotel where he has been sent to present the products of his company. Such an individual is also entitled to workers’ compensation.
- Example Three
An accountant going home from work sees a bank robbery taking place and decides to engage the robbers with his own firearm. In the ensuing shootout, he gets shot and demands compensation. His claim will be rejected since he was not hired to shoot robbers in the first place.
Furthermore, most employees are also generally covered if they get injured while they are attending any company-sponsored event (such as a workshop, seminar, company picnic, retreat, etc.).
- How Does a Workers’ Compensation Insurance Policy Actually Work?
Suppose you are at your workstation performing your duties when you get injured. You have to inform your supervisor or line manager immediately regarding the nature and severity of your injuries. As per the law, you have the unalienable right to immediate medical care. Should the nature of your injuries be so severe that you cannot come back to work the very next day, it is incumbent for the company to provide you your lost wages from the coverage provided by workers’ compensation insurance in Kissimmee, FL.
The period for which you receive your lost wages without coming to work depends on the state as well as the full extent of the policy. Furthermore, your workers’ compensation insurance will also pay for all of your medical care. However, there is a catch here. If you opt to sign up for workers’ compensation insurance in Kissimmee, FL, you will in effect give up your right to sue your employers for any reason.
- Example
Abe Lincoln is a content writer who was executing his job at his assigned workstation. The wires short-circuited, and he sustained serious burn injuries. While the workers’ compensation paid for his treatment, he did not have the right to sue his employers for faulty and substandard wiring, even though he had been complaining of a smoking electric connection at his workstation for ages.
In the long run, such insurance coverage does provide an element of protection, but it comes at a cost. Even if the employer had been directly responsible for the accident, the employee can only accept the compensation offered by workers’ compensation insurance in Kissimmee, FL.
- Conclusion
In light of the above, we can safely deduce that workers’ compensation insurance in Kissimmee, FL, is absolutely imperative for the safety and the financial security of the workforce. However, the insurance companies can and indeed do subject all claims to thorough scrutiny to weed out false cases.
Please call us at 407-344-1228, or email us at [email protected] for any insurance needs you may have.