Most businesses depend on their employees. They are the backbone of your company, working with customers, managing operations, and handling the day-to-day tasks that keep your business running smoothly. But what happens when an unexpected event leaves your valuable team member unable to work?
Workers’ compensation is the safety net that provides financial and medical support to employees who are injured on the job or become ill due to work-related activities. In Pennsylvania, workers’ comp isn’t just a benefit; it’s a legal requirement for most businesses.
Learn how workers’ compensation (PA) protects your employees and your business and what responsibilities you have as a business owner to protect your team.
What You Need to Know About Workers’ Compensation (PA)
Workers’ compensation is a mandatory insurance requirement for most businesses with employees in Pennsylvania. Here are some key points you’ll need to know about this type of business insurance:
Who Is Covered?
Workers’ compensation typically covers full-time and part-time employees, as well as temporary workers. Contractors are typically not covered.
What Does It Cover?
Workers’ comp provides medical benefits to cover the treatment associated with work-related illnesses or injuries. That could include doctor’s visits, hospital stays, and physical therapy, among other treatments. It also offers wage replacement benefits, paying a portion of an employee’s wages when they cannot work.
How Much Does It Cost?
On average, a Pennsylvania business owner can expect to pay $1.19 for every $100 of payroll each month. For example, if your average monthly payroll is $10,000, you can expect to pay an average of $119/month for workers’ comp insurance.
The specifics of your workers’ compensation coverage will vary depending on your business and the number of employees you have. You’ll want to work with an experienced insurance broker to help you get the best policy for the best price.
How Workers’ Compensation Protects Your Employees
Workers’ compensation can help you create a safe, secure work environment for your team. This insurance offers crucial support to your employees if they experience a work-related injury or illness. Here’s how they can benefit from your workers’ compensation insurance.
Medical Coverage
The most significant benefit of workers’ compensation is the comprehensive medical coverage for work-related injuries and illnesses. With this coverage, your employees will get the medical care they need without paying out of pocket. Workers’ comp will cover a wide range of medical expenses, including doctor visits, specialists, surgery, hospitalization, medication, and physical therapy. It can give your team peace of mind knowing they’ll get the care they need should anything happen to them.
Wage Replacement
Medical expenses aren’t the only concern when an employee cannot work. They’ll be concerned about losing their income, too. A work-related injury or illness may leave them unable to earn a living, but workers’ compensation provides wage replacement benefits. Most policies will cover a portion (usually two-thirds) of the employee’s lost wages while they recuperate. This essential financial assistance lets your employee focus on healing instead of worrying about their income.
Return to Work Programs
Many workers’ comp policies offer support services that help employees safely return to work as soon as possible. That might include connecting them to physical therapy, vocational rehabilitation, or job placement assistance. Getting team members back to work can benefit their recovery, give their families essential income, and keep the workplace functioning smoothly.
How Workers Comp Insurance Protects Your Business
Workers’ comp is designed to protect employees, but it also benefits your Pennsylvania business. Here’s how:
Reduced Lawsuit Risk
Without workers’ comp insurance, an employee could sue your business for medical expenses, lost wages, and pain and suffering due to a work-related accident or illness. With this insurance, there is an established system for compensation, minimizing the likelihood of a lawsuit.
Enhanced Culture of Safety
Workers’ compensation encourages businesses to implement safety protocols and training programs to reduce the risk of accidents and injuries, creating a safer working environment. This protects employees and will also help your business avoid claims in the future.
Financial Stability
A major work-related injury or illness can have a devastating impact on your business. Workers’ comp mitigates that risk by covering medical expenses and lost wages, so a single incident doesn’t derail your company’s financial stability.
How Workers Comp Insurance Protects Your Business
Workers’ comp insurance is designed to help you protect the most valuable asset your business has: your employees.
Eber & Associates offers comprehensive workers’ compensation (PA) coverage tailored to the specific needs of your business. Talk to our insurance brokers today to ensure your business complies with all Pennsylvania workers’ compensation laws and that you have a competitive insurance policy that fits your budget. We can even assist with risk management, helping you implement effective strategies to prevent workplace accidents and injuries.
Don’t let an unexpected event harm your employees or your business. Contact the Eber & Associates team today and ask for a free quote on workers’ compensation coverage.
Source: https://www.forbes.com/advisor/business-insurance/workers-compensation-insurance-cost/
