Workers Compensation Insurance 101 For Construction Businesses

Typically, building locations are quite perilous areas to work for employees. Heavy machinery, bulky materials, steel girders and possibly deadly power tools and earth moving equipment are used, usually leading to serious and sometimes even deadly accidents. Which is why it’s absolutely crucial for building firms to carry not only workmans comp insurance but in addition general liability insuranceto cover them from potential claims caused by injured employees not to mention the possibility of injured customers or even casual bystanders.

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In most states, all employers are required to provide workers comp insurance for employees legally. Failure to do so will not only result in serious penalties but in addition possible jail time for breaking the law. The business will also be left in the unfortunate position of needing to pay injury and disability claims themselves regardless of whether the employee was negligent or at fault. These damages may very likely run into numerous hundred thousand, and even millions, of dollar according to the intensity of the accident suffered and may end up devastating the business. That’s a good good reason that, even if workers compensation insurance is not mandatory, it’s still a important precaution for any responsible business with employees to carry this insurance.

So how exactly does workers comp insurance function?

Workers comp insurance policies covers the business against all liability and damages resulting from injuries, illness or death suffered by employees as the result of occupational accidents, hazards or negligence. In the case of an accident, illness or fatality at work, employees or their beneficiaries (in the situation of the death of the employee) are fully compensated, regardless of who was at fault the business, or the employee. The amount of insurance paid out is in proportion to medical payments, lost wages, or permanent disability. This also means that employers receive immunity against further civil lawsuits by injured employees.

So how exactly does a business get workers comp insurance?

Employers buy workmans compensation insurance from private insurers. Insurance premiums vary according to the number of employees.

What benefits do workers receive from a workers’ comp policy?

All medical payments are taken care of and employees may also be compensated for temporary or total disability. Additional payments will be made if the worker has suffered a permanent disability for example the loss of limbs, damaged eyesight etc, or is unable to return to function because of the severity of the injuries. If the employee is killed while working, the insurance is released to their dependents.

Maintaining coverage

The responsibility is on the employer to maintain workers comp insurance all the time. Failure to take action will result in penalties or imprisonment, at the same time as being liable for the cost of injuries sustained by workers. For minor accidents under $1000, the business may elect to pay the payments themselves.

Accidents

In the situation of injuries and accidents, the employee is obliged to provide immediate medical treatment for workers and should also inform the insurance firm.