More About Workers Comp

Q: What determines my WC rates?
A:
Workers Compensation premiums are based on the payroll earned by employees during the policy period, which is usually one year. Factors in determining rates include type of work performed, and your estimated annual payroll for the coming year as it relates to the different types of being performed at you business.

Q: What do I do if my Worker’s Compensation insurance has lapsed?
A:
Workers Compensation laws vary by state, but it is strongly recommended that you purchase new coverage as soon as possible. Coverage is a statutory requirement in almost every state when you employ a certain number of persons; either full or part-time, you may be subject to hefty penalties should an uninsured loss occur.

Q: What is covered in my Worker's Compensation insurance policy?
A:
Worker's Compensation is fairly straightforward. In general, it provides payment for all bills resulting from work-related injury, including medical bills, rehabilitation, as well as a certain amount of “income.” It also provides a death benefit. Ask your insurance agent to explain exactly how your coverage relates to the laws in your state.

Q: How large does a company need to be to need Worker’s Compensation insurance?
A:
If you own a business of any size that employs a staff, Worker’s Compensation insurance protects your employees and helps foster a positive work environment. Some states have passed laws making it mandatory to have Workers Compensation insurance if you have more than three employees on payroll.

Q: Where can I find information on minimum wage requirements?
A:
Information for each state is available at the Department of Labor website: www.dol.gov. Look for the clickable map of the United States and select your state for specific information.

Q: What is the Family and Medical Leave Act?
A:
The Family and Medical Leave Act (FMLA) provides certain employees with up to 12 workweeks of unpaid, job-protected leave a year, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave.