What is workman's comp?
Workman’s comp, or workers’ compensation insurance, is a type of insurance that provides financial assistance to employees if they are injured or become ill as a result of performing work-related duties. The injury or illness does not necessarily need to occur at the jobsite; it does, however, have to occur as a direct result of doing something work-related, such as operating machinery or moving boxes. Some work-related activities, such as driving to and from work, are not considered covered activities in most cases.
Workers’ compensation insurance is a “no-fault” insurance type, meaning that neither the employee nor the employer can be found to be at fault in the case of an accident or illness. In other words, the “fault” is irrelevant.
This type of insurance protects both the employer and employee. The company is protected from lawsuits, while the employee receives support for their medical bills and other related expenses.
Workman’s comp can also cover more than medical bills. Some covered elements include:
- Partial missed wages
- Prescriptions and medications
- Disability payments
- Death benefits
Almost every state requires that businesses carry workers’ compensation insurance. This is why having a certificate of workers’ compensation on hand is critically important. A business might need it for a workers’ comp audit, or for securing contract work or deals. Regardless, every business owner should be able to prove that they are carrying workers’ comp insurance.
Injured Worker Coverage
Why proof of insurance is important
A certificate of workers’ compensation is a document that is specific to a policyholder’s plan. It proves that that particular business or entity has an active, up-to-date workers’ compensation plan.
Having a certification of coverage for workers’ comp on hand is important when landing business deals and interacting with potential clients. In fact, some clients may only do business with companies that have a certificate of workers’ compensation. This is to ensure that the company is able to keep its workers protected in the event anything should happen during the project.
Some situations in which a client might request to see a certificate of workers’ compensation:
- Large jobs with many workers or employees
- Government agencies doing inspections
- Jobs at the governmental level, such as city construction jobs
Fortunately, obtaining a certificate of workers’ compensation is often fairly simple. The first step is to contact the insurance company by website, phone or email. An insurance representative can then usually email or mail the certificate to the employer. Additionally, some companies, like CompSource Mutual, have a customer portal that makes it especially easy to obtain a certificate of workers’ compensation.
For states that have state-administered workers’ compensation plans, companies may need to access their online account through the state’s website in order to obtain their certificate of coverage.
Requirements for workers’ compensation insurance
In general, workers’ compensation is required for most businesses, but every state has its own set of work compensation laws. Most states have some kind of employee requirement that determines whether a business must carry workers’ compensation insurance. In some states, having even one employee means that business must carry workers’ insurance. In other states, the minimum might be three, four, or five employees.
Kansas and Texas are a little different from the rest. Kansas has a payroll minimum: businesses that reach a payroll of $20,000 must carry workers’ comp insurance. And Texas does not require employers to carry workers’ compensation coverage at all.
Most states also give the option for business owners to purchase a private plan or self-insure. Businesses must qualify for self-insuring, since it can be a risky undertaking. Self-insuring means that the business owner must prove that they can financially handle paying out workers’ comp claims. Other states also give business owners the option of purchasing from a state-administered fund.
Keep in mind that, no matter the requirements or state policies, a certificate of workers’ compensation insurance should be issued to the policyholder if an active policy is in place.
Why CompSource Mutual
CompSource Mutual aims to provide policyholders and injured workers with the best customer care experience in Oklahoma. CompSource Mutual has served Oklahoma businesses – large and small – for more than eight decades. Our expertise spans hundreds of industries – so our team knows how to get you coverage that makes sense at a fair price.
Get your Certificate of Insurance
What is a certificate of insurance?
A certificate of insurance, or COI, is a statement of coverage issued by the company that insures your business. Usually no more than one page, a COI provides a summary of your business coverage. It serves as verification that your business is indeed insured. Potential clients may request a COI as a condition for doing business with you.
How can a business owner obtain a certificate of workers' compensation?
A business owner can obtain a copy of their certificate of workers’ compensation from their insurance company or broker (if applicable). Usually, the certificate of coverage would be emailed, or be available on the insurance provider’s website via the customer portal. CompSource Mutual has a customer portal that makes it easy to get information about your plan.
Will a business' mod rate for workers' comp be on their certificate of workers' compensation?
No, it likely would not be. The certificate of coverage shows only basic information about the policyholder’s plan, such as contact information, business name, policy number, and expiration date. Something like a mod rate could change every year, so it is unlikely that this would be on the certificate of coverage.
Does a business owner need to know how to file for workers' comp?
In general, yes. The business owner or supervisor of the business should know how and when to contact the workers’ comp insurance company in the event of a workers’ comp claim. The insurance company can help the supervisor fill out any necessary forms.
How can a business improve workplace safety?
Some ways to help improve workplace safety are: improving safety training for new employees, requiring routine maintenance of equipment and tools, and promoting healthful practices among employees.
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