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Workers’ compensation insurance in St. Cloud, Fl, protects both your employees as well as your business from various work-related illnesses, accidents, and even death. In fact, just about all the states in the union mandate employers to have insurance protection to cover medical costs as well as lost wages. This applies to those workers who have become injured in the line of duty or have become ill while executing the tasks associated with their job. If your company does not carry any form of workers’ compensation insurance, then you will almost automatically be liable for paying all these costs. Apart from that, you might also be subject to multiple fines and/or penalties as per the laws and regulations of your state of residence.

Please Call Us At 407-344-1228, Or Email Us At [email protected] For Any Insurance Needs You May Have.

Here, it is pertinent to note that workplace injuries typically occur even in the safest workspaces that rigidly enforce all safety and security related SOPs (standard operating procedures). Workers compensation applies even if your staff member has his own health insurance plan. In this case, you are nonetheless directly responsible for all of their medical treatments and ancillary costs, despite their own insurance policies, especially if they suffer any sort of job-related illnesses or injury. Furthermore, the affected worker is also entitled to a certain percentage (generally 75 percent) of their regular wages for the time period when they are not able to work because of their injury or illness. All of these costs and expenses are covered by workers’ compensation insurance. If your business concern does not have such an insurance policy in place, then you will inevitably have to pay all of these costs out of your own pocket.

  • When Do You Require Workers Compensation Insurance?

You will need such insurance if your business:

  • Is now ready to hire your very first employee`
  • Has at least one or more full-time staffers
  • Has at least one or more part-time employee
  • It is in its growth stage and you are hiring multiple employees
  • Who Pays for Workers’ Compensation Insurance Plans?

The cost of workers’ compensation insurance policies is always paid by the employer. From the human resources perspective (for large companies), it is simply another cost that is associated with hiring employees to work for the organization. Here, it is pertinent to note that unlike several other kinds of insurance plans such as health insurance (for instance), the responsibility of paying workers’ compensation is not supposed to be shared between the employer and the personnel they employ. And if any company forces its workforce to pay for workers’ compensation insurance, it is in violation of the law of the land.

You should pause to consider exactly what will happen in case your business does not have this kind of insurance protection. The thing is that should an accident occur at your workplace and your employees are injured in the line of duty, you will still be required (as per the law of your state of residence) to cover their full medical treatment and all incremental costs and expenses along with their lost wages. And apart from that, the law will still impose fines and other penalties for not complying with the requisite rules and regulations.

  • A few Examples of Different Situations Where Workers’ Compensation Claims May Be Entertained

Since workers compensation insurance has been designed to offer a broad range of coverage in order to protect your business as well as your employees, let us take a look at a few examples of how claims may be entertained and what level of coverage will apply in case any accident takes place.

  • Example One

While placing a large and heavy box on a high shelf in the storehouse of your company, a staff member inadvertently stumbled and knocked down another large box on a colleague’s head. This unfortunate incident led to the latter employee being knocked out cold. He was immediately rushed to a medical facility where extensive CAT scans were conducted. He was advised complete bed rest for a few days.  Here workers’ compensation insurance in St. Cloud, FL, will pay for the total expenses regarding the injured employee’s treatment at the hospital. Furthermore, a portion of his salary (generally 75 percent as per most states) will also be paid to him for the duration of his bed rest or till he re-rejoins his workplace once again.

  • Example Two

A data systems analyst spends most of his workday hunched on his keyboard.  In time, he begins to notice a lot of discomfort in both of his wrists, which turns to excruciating pain in the next few days. The doctors at the nearest hospital diagnose carpal tunnel syndrome and recommend immediate surgery. The total cost of the surgery and the daily wages that the worker will miss out on while he is in the hospital will be covered by workers’ compensation insurance.

  • Example Three

An electrician is busy working on a rehab project of an old building. The work involves the complete replacement of the whole electrical system of the structure. The electrician accidentally touches a live wire and is instantly electrocuted. He survives but suffers severe third-degree burns and spends the next seven months at a hospital and another eight months in rehabilitation. In total, he spends fifteen months out of work and still has to face periodic checkup ups and surgeries before he can be declared one hundred percent fit again. Workers’ compensation insurance in St. Cloud, FL, will cover the worker’s extensive medical costs and also pay him a percentage of his lost wages so that he will not be rendered destitute while performing his job.

  • Workers Compensation Insurance: 6 Crucial Points That Every Small Business Owner Should Always Know

There are a few points that every small and medium enterprise owner should know regarding workers’ compensation insurance in St Cloud FL.

  • The Industry or Sector Does Not Matter

Many people may think that workers’ compensation is necessary for companies that work in high-risk sectors such as construction, overseas oil exploration, etc. However, the fact is that all companies require workers’ compensation coverage, irrespective of the sector. Even if you are operating in the financial sector and all your employees only sit in front of a computer screen, you will still be mandated by the law to acquire workers’ compensation insurance coverage.

That is, certain occupations that require manual labor may require a greater degree of coverage, but even sedentary occupations require workers’ compensation protection.

  • Workers’ Compensation Coverage Is a Legal Requirement

Apart from Texas, all the other states of the union require that every employer must have workers’ compensation insurance.  However, the specific requirements tend to vary from state to state. This is why it is important that you understand your state’s respective laws to ensure full compliance. Remember, ignorance of the law is no excuse and violating the law can mean stiff fines or even criminal liability. 

  • Workers’ Compensation Covers Work-Related Injuries, Illness, and Even the Death of an On-Job Employee

If an employee is injured or becomes ill due to the nature of his job or because of any other work-related activity, then workers’ compensation insurance in St. Cloud, FL, will pay his medical expenses as well as a pre-determined percentage of his lost salary when he is too incapacitated to work.

  • A Workers’ Compensation Claim Is an Extremely Expensive Affair

As per data culled from the National Council on Compensation Insurance, the average worker’s compensation claim goes well into tens of thousands of dollars. And this does not include the wasted man-hours as other employees struggle to perform the job of a skilled and experienced but incapacitated worker. All of these funds combined can even reach 6 figures. This is money that will come from your pocket if you do not have workers’ compensation insurance in St. Cloud, FL. And all of this is in addition to any penalty or fine that the state may impose on you because you are in violation of the law.

  • Self-Insurance Is a Great Option for Larger Businesses

If a company is big enough, it might opt for the self-insurance option. This means that instead of purchasing workers’ compensation insurance in St. Cloud, FL, the company can take on the risk of any sort of work-related illness or injury by themselves. Generally speaking, most states in the US allow this practice, as long as the company can satisfactorily show that it has the financial backing to pay any compensation claims to its workforce to the full satisfaction of the employee concerned.

  • Example

A California company, for instance, will need to show that it is worth at least $5 million and accumulates annual net profits well over $500,000 for a minimum of five years. If it fulfills these requirements, it will be allowed to apply for self-insurance in terms of workers’ compensation coverage. 

  • It Is Possible to Purchase Both Workers Compensation as Well as Liability Insurance Simultaneously

It is possible to pair workers’ compensation insurance in St. Cloud, FL, with multiple different coverages such as professional liability insurance and/or general liability coverage in order to ensure maximum protection for your extensive workforce as well as your company.

  • While Workers Compensation Is a Mandatory Requirement, It Is Not Very Expensive

You don’t need to fear purchasing workers’ compensation coverage. It is an inexpensive proposition that does not cost much. For a small company with only a few employees the total annual premium expense will only be three figures. This is not much when compared to the massive payouts that you will be forced to pay in case there is an unprotected claim. 

However, you will almost certainly be expected to pay more if your employees have made multiple claims beforehand since you will no longer be eligible for a ‘no claims’ bonus. In this case, you have to figure out why so many accidents have taken place that warrants workers’ compensation insurance. You will have to tighten up your basic SOPs (standard operating principles) as well as overhaul your accidents and safety policy.  If your passageways are ill-lit (for instance) you may put in better lighting and make sure that your staircases and pathways are free from trip hazards.

However, if you run a high-risk enterprise, then you will just have to vector in the workers’ compensation insurance in St. Cloud, FL, in your overall business plan.

  • Example

ABC Adventure tours is a company that advertises extreme sports in some of the most dangerous places in the US. From wild river kayaking on dangerous waterways to mountain climbing in subzero temperatures, they do it all. Under the circumstances, ABC’s employees will be exposed to an unprecedented level of risk. Here the company’s insurance providers will vector in the risk of their ROI (return on investments) and charge their premiums accordingly. Conversely, a company of CPAs will have a lower risk factor and therefore, will have to pay lower premiums for insurance protection.

  • Conclusion

In light of the above discussion, we can say that workers’ compensation insurance in St. Cloud, FL, is arguably one of the central planks of any employee protection program. It is even more important for the company because not having such a plan will expose the company to compensation lawsuits that they cannot afford. Apart from that, the state can also impose severe penalties and fines for not adhering to the law of the land.

Please Call Us At 407-344-1228, Or Email Us At [email protected] For Any Insurance Needs You May Have.

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