In most states, workers’ compensation insurance is mandatory. For example, here in Colorado where Taggart is headquartered,
“All public and private employers in Colorado, with limited exceptions, must provide workers’ compensation coverage for their employees if one or more full- or part-time persons are employed. A person hired to perform services for pay is presumed by law to be an employee.”
The regulations vary, but you might need workers’ compensation insurance if:
- There are occupational hazards or illnesses linked with your industry.
- You employ one or more part-time staff.
- You have one or more full-time employees (in most states).
- You are getting ready to hire your first employee.
If you aren’t sure whether workers’ compensation is required for your business, don’t hesitate to contact us today. Our insurance advisors will answer any questions you have.
Examples of Common Workers’ Compensation Claims
The legal definition of a work-related injury is quite broad, and here are a few examples of common claims:
- Accidents/Injuries: An employee gets into a car accident while using their vehicle for work purposes. Hospitalization is required, along with physical therapy. The cost of the hospital stay and PT are covered, along with a portion of missed wages.
- Repetitive Stress Injuries: Some claims stem from injuries caused by repetitive physical motions. Carpal tunnel syndrome from long hours working at a computer is one example, and insurance would cover the cost of surgery, rehabilitation, and a portion of missed wages during recovery.
- Occupational Illnesses: If there is a clear connection between working conditions and an employee’s illness, workers’ compensation insurance will cover medical expenses and a portion of lost wages. For example, if an HVAC mechanic is exposed to asbestos and they later develop mesothelioma, a claim could be made.
- Disabilities: If a workplace injury renders an employee unable to work, their disability ensures medical bills and a portion of their lost wages will be covered by the employer’s workers’ compensation policy.
What Does Workers’ Compensation Insurance Not Cover?
While it generally covers any injuries or illnesses that develop on the job, there are some exceptions. Workers may not be covered in these cases in some or all states:
- Self-inflicted injuries.
- Injuries that happen outside of the workplace, or while the employee is not on the job.
- Injuries that occur while an employee is committing a crime.
However, note that laws vary between states. In general, workers’ compensation legislation has been designed to give employers immunity from any liabilities above the amount provided by their insurance policies.
When choosing an insurance partner, ask detailed questions about what is and is not covered, and any state-specific rules that will impact your policy. At Taggart Insurance, we take a consultative approach to workers’ compensation insurance, which means we assess your unique risks to come up with a comprehensive risk management solution. So whether you’re protecting employees and your business in Colorado or elsewhere in the U.S., we invite you to experience the Taggart difference firsthand.