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Intro to workers' insurance

Workers’ compensation insurance is an important type of insurance that benefits both employees and their employers. Workers’ compensation insurance protects a business in the event an employee gets injured at work and provides benefits to the injured employee in the form of financial compensation. In the event of a workplace injury, having a workers’ compensation policy can give you peace of mind, knowing that your business is covered.

A work compensation policy provides partial financial compensation for employees who are injured or become ill as a direct result of completing work-related duties. It may compensate employees for:

  • Medical expenses, such as hospital bills
  • Partial missed wages
  • Disability payments
  • Death benefits, such as funeral costs
  • Vocational retraining

The injury or illness must have occurred as a direct result of doing work for that company. For example, if an employee slips and falls while carrying a heavy box during work hours, they may be eligible for workers’ comp benefits. However, if an employee gets into a car accident on the way to work, they are not eligible for any benefits.

A work compensation policy may also cover job retraining. This can apply if an employee is injured or impaired in a way that, while they cannot return to their former job, they can continue working in a different capacity.

By accepting partial compensation for work-related injuries and illnesses, employees enter an agreement with the company. Workers’ insurance is typically “no-fault”; it does not matter whose fault the accident was. This agreement usually positively benefits both the employee and the employer; the employee receives financial compensation, while the employer receives liability protection.

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Work compensation policy requirements and exceptions

Each state has particular requirements for workers’ insurance. Many states require that companies with at least one employee carry workers’ compensation insurance. Other states have employee thresholds. For example, a company may need to have three, four, or five employees before it is required to carry workers’ compensation insurance. Kansas is the only state with a payroll requirement; that is, a business must have a certain amount ($20,000) in payroll expenses before it must carry workers’ compensation insurance. Texas is the only state that does not require workers’ insurance at all.

Some states also have requirements for where a company must purchase its insurance. Some “monopolistic” states, like Wyoming, have their own state-administered fund, which is the only option in the state. Wyoming requires that all qualifying businesses purchase workers’ comp insurance through this fund and does not permit commercially bought plans. Many states give companies the option of purchasing the state-administered plan (if it has one) or a commercial plan. Most states also permit companies to self-insure, which means that, if the company qualifies, it may act as its own insurer.

Many work compensation policies have exceptions that allow for temporary or seasonal workers, family businesses, and/or state-specific industries. Oklahoma allows an exemption for small family businesses whose employees are all related to the owner. Oklahoma also allows an exemption for agricultural businesses with less than $100,000 in payroll expenses. The agricultural industry is particularly important to Oklahoma’s economy, and while a business may qualify for an exemption, the benefits of having a workers’ compensation policy far outweigh the risks in many instances. Workers’ compensation is a smart investment that protects your business and your employees, and at CompSource Mutual we’re here to help and provide the necessary support for your business.

Why CompSource Mutual

Workers’ compensation policies protect businesses and workers alike from inherent work risks. CompSource Mutual’s experienced team offers exceptional service and unique resources to support businesses in keeping their most valuable assets safe – their people.

Ready to get coverage that makes sense? Get a quote today

Injured Worker Coverage

Check out our coverage details and benefits for CompSource Mutual policy holders and injured workers.

It depends on the company the employee works for, as well as the state in which the company is located. In Oklahoma, employers who have even just one employee must carry a work compensation policy. If that employee becomes ill or gets injured as a direct result of doing work-related duties, then that employee may be eligible for workers’ comp benefits.

Workers’ comp fraud can occur in several different ways. Workers’ comp fraud occurs when someone, can be either the employee or employer, misrepresents an injury or illness to benefit financially, such as making false statements or concealing information with the goal of manipulating the process. It is important to understand what workers’ compensation is to help identify and prevent fraud from occurring.

Not necessarily. An employee should know when and how to make an accident report and/or report injuries and illnesses to their employer. They should make sure to gather as much evidence as possible to document their injury or illness. They should report it to their supervisor as quickly as possible. The supervisor, manager, or company owner is then responsible for contacting the workers’ compensation insurance company and filing an official claim.

Need more information? Get the rundown on how the claims process actually works.

It depends on the type and severity of the injury. If the employee does not need to miss any days of work, then the workers’ comp benefits may only cover the medical expenses needed to treat the injury. If the employee needs a few days off work, then the benefits may partially cover missed wages for this time period. If the injury or illness results in a temporary or permanent disability, then disability benefits are calculated depending on the impairment level and whether the employee can return to work.

There are many factors that go into calculating workers’ comp premiums and payouts. Calculating insurance premiums involves lots of company-specific factors, including the state in which the company is located, how many employees it has, the industry it is in, and the company’s history of workers’ comp claims. Calculating workers’ insurance payouts also involves many factors, including the severity of the injury or illness, whether time off work is required, the impairment rating, and whether the injury or illness results in workers’ compensation disability payments.

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