The job insurance It is workers’ compensation insurance that differs from any other type of small business insurance that is regulated by the state.
Except for Texas, the rest of the 49 states require that all companies with employees have this type of insurance, however it does not mean that having workers’ compensation insurance is the same for all companies with employees and the cost of coverage varies from one state to another.
Labor insurance coverage prices
All of this has to do with 50 governments solving a problem like job insurance, which is solved in 50 different ways.
For example, in Colorado, the rules state that there is an exemption from coverage for a volunteer operating in the ski area.
In Florida, the rules state that construction professionals are required to have coverage for themselves, even if they have no employees.
From this view, it is understood that the prices of coverage are variable.
Without breaking down the different types of jobs or the different levels of risk, in Texas for every $ 100 in payroll. the cost is $ 75 while in Alaska the cost is $ 2.74 for every 100 on payroll.
In this sense, the NCCI (National Compensation Insurance Council), as an independent body, is in charge of regulating and supervising all workers’ compensation matters in much of the country and has developed a system of classification codes to categorize the types of work.
There are currently more than 700 codes, each of which denotes a specific type of job that corresponds to the risks associated with that job and the injuries to which those individuals may be exposed.
The riskier the profession, the more expensive it is to purchase compensation insurance for that profession and even the cost of workers’ compensation insurance depends on a number of factors such as …
The number of employees hired, the laws of the state where you do business, the type of work and the risks to which the employee is exposed.
Any of these factors can affect the cost of insurance, so it is difficult to estimate the premium without knowing the details of the business operations.
For example, a small business with annual revenues of between $ 250,000 and $ 1 million that has two employees and up to 5 programmers in Missouri, class 8803-06 with a payroll of $ 100,000 and in Texas, class 8810-08 with a payroll of $ 434,800, the annual premium is $ 2,441.
What does work insurance cover
The job insurance It covers costs associated with illness or injury to your employees that your employees may suffer while working, medical bills, lost wages, ongoing medical care, and legal costs if an employee sues for a work injury that is not covered. However, each state has its own regulations on workers’ compensation.
The coverage limit for bodily injury accidents is 1 million per accident.
The bodily injury illness coverage limit is 1 million per employee.
Another example could be an independent contractor, sole proprietorship in Illinois, class 8859-02 with annual income of $ 140,000, the annual premium is between $ 641 and $ 1,100, because keep in mind that the real cost of workers’ compensation insurance It depends on where you operate the business and how much you earn among other factors.
Regarding partial work, you should bear in mind that according to the law on patient protection and affordable assistance for employers, it indicates that for anyone who works 30 hours a week you must include insurance or you will pay a fine in any of the states of the United States.
Accident: Accident coverage helps you pay for expenses, deductibles, copayments and transportation to medical centers.
Through the employer, the worker receives benefits in the case of injuries such as fractures, dislocations, lacerations, eye injuries, broken discs, tears, second and third degree burns …
Medical services and treatments such as X-rays, ambulance, medical tests including MRIs, X-rays, CT scans, and some types of surgeries.
Hospitalization includes hospitalization and rehabilitation after an accident.
Additional benefits are also included in the event of dismemberment, accidental death and supplementary allowance for accommodation.
Critical illness: Critical illness insurance through the employer may include:
The payment of benefits so that the injured party can use it as it suits him or her, coverage for the spouse or partner and their children without having to present a receipt for expenses.
Replacement of income: If the employee cannot receive his wages due to an accident or illness, short-term disability insurance through the employer can replace a part of his income.
Weekly, the employee can receive a part of his salary for 3 months or a year depending on the policy taken out by the employer.
The coverage may even have rehabilitation incentives so you can return to work.
Ultimately, workers’ compensation insurance protects all employees of your business, as it helps when an employee has an accident in the car while doing work for the company.
It also protects the employee who is dedicated for example to programming or who works all day with the computer and was diagnosed with carpal tunnel syndrome.
As an employer you must obtain the appropriate coverage for your business. Well, your employees will be covered and you also protect your business and assets.
That’s why you must find the workers’ compensation coverage that best suits your business to improve job safety, control losses, reduce claim costs, and protect the people who work for you.
Business interruption insurance: Any reason can interrupt the activity of the business and therefore you will be forced to close the doors for a while, then the business interruption insurance offers you the protection you need to maintain the flow of capital in the event of interruptions like a fire, then your business will stay afloat in the face of a loss that forces you to close for a short time.
It helps you with lost net income and ongoing expenses like salaries, advertising, taxes, and mortgage.