The most valuable asset in a business is its human resource. The fleet of employees is the wheels for any business. But wait. Are your employees insured? Are they protected enough? Or left exposed to dangerous areas of business? From a painter hanging off of the walls to researchers dealing with chemicals, the dangers are everywhere. But, how practical is it to run a business without any tangible risk possibility?
This question brings us to the single answer of businesses — Workers Compensation.
What is workers’ compensation?
Effectively, it is insurance for the employees but paid by the employer. This insurance acts as a cushion for employees undertaking hazardous tasks. Though the risk of injury and disability stays the same, this insurance is a bankable asset.
Workplace injuries are increasing, despite increasing safety measures. As an employer, seeing your worker injure himself/herself on the job is a sight, not worth cherishing. Not only would you have to take up responsibility for the workplace injury, but there is also an added facet of compensation.
Attorneys in Knoxville Tn concur to the obligation of the employer to fairly compensate for the injury’s extent. To streamline this process, the worker’s compensation law is considered.
What are the benefits of workers’ compensation?
- Coverage of medical bills,
- Wage compensation for lost working hours,
- Survivor’s benefits,
- Rehabilitation costs are covered,
- Reduces legal hassles,
- Covers occupational health conditions.
- Reduces unnecessary litigations from workers,
- Protects from civil litigation in the absence of regulatory compliance,
- Costs less than complete compensation for an uninsured worker,
- Helps in gaining employee loyalty.
Now, how does workers’ compensation work?
First, as an employer, you must understand your State’s local requirements. Since the concerned law is managed at the State level, consulting with a local worker’s compensation attorney is advisable. This provides clarity on who needs to be insured and its extent. This starts with as basic as defining who an employee is, as per your company and state.
A quality lawyer may also assist you with the best insurance companies, their interest rates, and costs too.
Furthermore, insurance companies screen your company and provide a quote. For a workers’ compensation quote, 4 factors are usually considered.
Kind of business
A company that is into construction runs on a high risk of injury, compared to an IT company. Likewise, insurance companies consider the potential of risk in the work executed by the employees of the firm.
As mentioned earlier, the worker’s compensation law changes with the state. Henceforth, the location of your operations is prioritized over the place of your headquarters.
Size and scope of operations
This accounts for the firm’s scale of operations. It also includes the assessment of a variety of employees. Albeit being of very low significance, insurance companies demarcate between full-time employees and others.
How does your company’s history look like?
A safe track record of minimal workplace injuries is an ideal situation for all firms. However, ideal situations are rare. Hence, they study the safety protocols in your firm. Past claims also play a huge role in deciding your insurance premium.
You know what your workers’ compensation policy holds and what affects it. Now, let us answer this question — “Does your company need insurance for workers’ compensation?”
Any firm in Knoxville
- With a minimum of 5 employees, including part-time professionals.
- Involved in the construction or coal mining business.
Is required to comply with the laws of Tennessee’s workers’ compensation and carry workers’ compensation insurance.
Some compensation benefits provided by workers compensation in Knoxville TN include:
- If an employee suffers an injury or illness while working, his/her medical treatment is covered in full. This includes all expenses associated with the injury or illness. For example Regular follow-ups, medications, and other expenses.
- Employers choose the doctor or healthcare facility, where the injured employee can admit themselves at.
- In case of immediate care, commuting to the nearest emergency room is covered.
- For people with a temporary disability, 2/3rd of their weekly wages is paid until he/she returns to work.
- Permanent disability is often met with a lump sum one-time settlement.
- This amount is based on the employee’s previous earning and impairment rating. Calculating the above, 450 weeks’ worth of compensation needs to be paid.
- For fatalities, there is an initial coverage of up to $10,000. Furthermore, compensation is as follows:
- A weekly payout of ½ the employee’s past wages to be paid to his/her spouse with no dependent children.
- A weekly payout of ⅔ the employee’s past wages to be paid to his/her spouse with at least one dependent child.
- A lump sum of $20,000 to be given to the employee’s estate, given no spouse or dependents.
An important facet of workers’ compensation policies is to understand its source. Generally, there are three types of compensation policies for workers.
- Traditional insurance.
- “Pay-as-you-go” insurance.
- State fund.
Now let’s look at how the process of workers’ compensation claims works?
In the case of any of your employees getting injured or ill, they should report to the company.
Note that there is a stipulated time, within which the injury or illness needs to be reported.
Next, the process is as follows:
- Medical assistance to the employee,
- Procuring a medical report from the healthcare professional,
- Paperwork to file the compensation claim,
- Receive benefits or negotiate on a settlement.
Now, we have understood the detailing of workers’ compensation. Its importance is also reflected in the complexity of the worker’s compensation law. The thorough detailing, coupled with the nuances of the law makes it less apprehensible for the common man.
Therefore, attorneys in Knoxville Tn should be your first choice. Our legal expertise in tempo with our experience shall be your guide. And for the best workers compensation lawyer, the Volunteer Law Firm is your solution.
We house decades of experience in compensation claims, settlements, and negotiations. Why wait? Contact us and work with the best.