Workers’ Compensation: Essential Knowledge for HR Managers and Employers

A worker is injured on the job every seven seconds

National Safety Council

Understanding and effectively managing workers’ compensation is essential for protecting your employees and your business. For businesses, it reduces the risk of lawsuits and shows a commitment to employee well-being. For employees, it provides financial support and access to medical care, bringing a sense of security and well-being. 

By securing the right coverage, educating your team, and promoting workplace safety, you can create a safer and more productive work environment. Netchex is here to support you every step of the way, providing the tools and resources you need to navigate workers’ comp with ease!

What is workers’ compensation?

An important aspect of managing any workforce, worker’s compensation is a form of insurance providing wage replacement and medical benefits to employees injured or who become ill due to their job.

The system operates on a no-fault basis, meaning that employees can receive benefits or compensation regardless of who was at fault for the injury, as long as it happened in the course of work. In exchange for these benefits, employees lose their right to sue their employer for negligence. 

What does workers’ compensation cover/not cover?

Covers:

• Medical expenses related to their injury or illness
• Rehab costs to help employees return to work
• A portion of lost wages during recovery
• Benefits to dependents in case of work-related death

Does Not Cover:

• Injuries sustained while commuting to or from work
• Injuries from intoxication or substance abuse
• Self-inflicted injuries
• Injuries from voluntary participation in off-duty activities

Who needs workers’ comp coverage?

Workers’ compensation is generally required for all businesses with employees. The specifics vary by state, but most states mandate coverage even for part-time employees. Some states have exemptions for small businesses or certain types of employees. 

Who pays for workers’ compensation?

Employers are responsible for purchasing workers’ comp insurance. The cost of the insurance is kept up by the employer and not taken from employees’ wages.

The average cost of a workers’ compensation claim is approximately $40,000

National Safety Council

What obligations do employers have for workers’ compensation?

• Communication: Keep open lines of communication with injured employees and insurance providers
• Promote Safety: Introduce and maintain programs to reduce workplace injuries

Compliance: Adhere to state-specific workers’ comp requirements

4 things HR needs to ensure when offering Workers’ Comp

• Secure workers’ comp coverage: Ensure you have the appropriate workers’ comp insurance for your state and industry
• Educate managers and employees: Inform managers and employees about the workers’ comp process and their roles
• Make regular contributions: Make timely payments for workers’ comp insurance premiums
• Facilitate claims and document everything in detail: Support employees through the claim process, document all incidents, and keep clear records

Promoting Workplace Safety

A proactive approach to workplace safety can significantly reduce the number of workers’ comp claims. Employers should:

• Conduct Regular Training: Ensure employees are aware of safety protocols and procedures
• Perform Risk Assessments: Regularly evaluate the workplace for possible hazards
• Encourage Active Communication: Create a culture where employees feel comfortable reporting dangerous conditions without fear of consequences 
• Implement Safety Programs: Develop and keep up with in-depth safety programs tailored to your industry

By fostering a culture of safety, businesses can not only reduce the number of workplace injuries but also improve employee morale and productivity.

How to get workers’ comp insurance with Netchex?

Netchex offers comprehensive solutions to simplify workers’ compensation management. Here’s how you can get started:

1. Learn more: Netchex + Next provides a seamless platform for managing your workers’ comp insurance
2. Explore Coverage Options: Review the available coverage options for your business needs
3. Get a Quote: Easily request a quote to understand the costs and benefits of different plans
4. Sign Up: Complete the registration process to secure your workers’ comp insurance with Netchex 

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