What is Workers' Compensation
This is the most valuable policy a business can purchase to protect the employee's from injury and the employer from lawsuit. Most people think that general liability is the most important, and it is to prevent an external loss, but it does nothing to prevent the employer from a lawsuit involving an employee.
Most states follow the same minimum requirements of $100,000 per occurrence, $500,000 aggregate, and $100,000 per occurrence by disease. What do these limits mean? For any one incident (or claim) the maximum payout is $100,000. The maximum payout for any one policy term, regardless of the number or type of claims, is $500,000. Most policy terms are one year. Finally, the max payout for any one incident caused by disease is $100,000. In many cases these limits are not enough and higher limits of $500,000 and $1,000,000 can be purchased.
We offer workers' compensation for most business' including the following:
- Retail Office
- Healthcare Professionals and Offices
- Construction Industries
- Garage Operations
- Small Business Offices
- Grocery Stores/Convenience Stores
Why Purchase Workers' Compensation
Depending on your business and the size, you may be required to have it. If you are not required to have it by law, you may still need it. Unlike many other types of insurance, workers' compensation carries a large penalty for not being in compliance.
First, even if you have one employee you should have workers' compensation. Whether it is required or not, an injury or claim without it can ruin and/or bankrupt a company. If an employee slips while walking in from the rain and breaks a leg. Sound a bit exaggerated? Unfortunately, I have seen this incident happen. With workers compensation you are protected, and so is your employee. Without it, you are facing a lawsuit and a potentially large payout. In addition, this can have a large impact on the company reputation and make finding help difficult.
Second, if your business is required by state law to carry workers' compensation and you don't the penalties can be horrific. The minimum fine a company is subject to is $1,000 and a stop work order until coverage is placed. The fine can be up to two times the employer would have paid in manual premiums for the preceding two years. Translation, workers' compensation premiums for the business are $7,000 (and would have been that for the two years prior), yet the company did not carry any. Fines could then be $28,000!!!!
Help With a Stop Work Order
If you have received a stop work order and need insurance to open your business back up we can help. Did you know that whatever premiums you pay to start a new insurance policy can be applied to your fines? You may not know this but the workers' compensation experts at Barbee Jackson Insurance can help you obtain competitive workers' comp insurance, as well as avoid all but the mandatory $1,000 in fines.
An example of how this works is as follows. Let's say the Division of Workers' Compensation is being generous. They only fine you $4,500 instead of the $28,000 they could have. You call Barbee Jackson Insurance and we help you find the best policy and a rate of $6,500 a year. If you pay $4,500 towards starting the policy we will send a paid receipt for the amount to the Division agent you were working with. They can then apply this towards your fines so that you will not have to pay the new premium and the fines. Make your money count for double and work with an agent who has experience in helping business' save money and open up quickly. Below are the things against the law to do if you receive a stop work order:
- Work in violation of a Stop-Work Order.
- Make a false statement for the purpose of obtaining coverage or to reduce workers' compensation premiums.
- Fail to report an injury to your insurance carrier.
- Discharge or threaten to discharge an employee for filing or attempting to file a workers' compensation claim.
- Deduct workers' compensation premiums from employees' pay.
- Misclassify an employee as an independent contractor.
To Exempt or Not To Exempt
This topic needs to be discussed in greater detail and is very specific to the type of business you operate. In many cases, the owner of the business may opt to be included and covered for injury on the job. If an employer chooses to be excluded (exempt) from coverage they will not receive coverage in the event of an injury. It will also allow an employer to save premiums as well. A greater discussion is needed to determine if this is an option and a good fit for you.
How Do I Purchase Workers' Compensation Insurance?
This is the easiest part, call Barbee Jackson Insurance! We have the ability to quote and bind coverage over the phone. If you are not able to call, inquire through our website and we can communicate through email.
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We offer a 100% FREE insurance evaluation. No risk or obligation! Our experienced staff is happy to review your current coverage and advise you on money savings ideas and coverage gaps that you may be missing.