Business demands may cause you to overlook issues ...
Your business relies on employees to provide products and services to your clients. Without a strong and committed employee base, your business would not survive. It is a fact that employees are injured while performing on-the-job duties. Without workers’ compensation, insurance employers could not afford to pay medical bills and time-loss claims of injured workers.
The State of California has its own rules regarding workers’ compensation. This makes it important to understand how to manage your businesses workers’ compensation risks. As a result, California ranks highest of all states in workers’ compensation costs. According to the workers’ compensation rating bureau, California spends $3.48 for every $100 of payroll.
There were over 470,000 reported injuries in the State of California in 2016. The top industries reporting claims were healthcare, social services, retail, hospitality, manufacturing, and transportation.
According to the Workers’ Compensation Insurance Rating Bureau of California (WCIRB), the average worker’s claims lasts longer than any other state in the nation. The report stated that over 60 percent of claimants are paid thirty-three percent longer than in other states. In California, it takes eleven years to settle most indemnity claims, as compared to about five years in Florida.
Sixty percent of workplace injuries are back related. In California, over 370 workers lost their lives in 2016, which is down slightly from 2015, but still one of the highest in the country. Thirty-eight percent of the deaths involved transportation accidents.
Here are the tops causes of loss categories:
Many proven best practices if implemented will help you in managing your workers’ compensation risk. A little work up front will help reduce workplace accidents and injuries.
Workers’ Compensation insurance plays a vital role in helping businesses manage their employee and safety risks. Your agent should be able to provide you with a number of market options and help you manage your overall risk.
Workers’ compensation offers two benefits. First, workers’ compensation provides an avenue for injured workers to obtain medical treatment when they experience an on-the-job injury. It also provides a system to pay the injured workers while they are in recovery. Second, workers’ compensation usually protects the employer from litigation from injured workers. Workers’ compensation is no-fault insurance, so there is no need to determine liability only that the injury occurred on the job.
Under California law, there is a detailed schedule of benefits injured workers expect if they are injured while on the job. In addition, injured workers can receive treatment and rehabilitation for their injuries to help them return to pre-injury condition. In some cases, the injured worker can receive a settlement if there is determined to be a partial or permanent disability.
There are different kinds of workers’ compensation programs you may wish to consider. Depending on your size, risk appetite, and industry, you can have your agent design a plan that is tailored to meet your individual needs.
Straight Workers’ Compensation – This is the most common type of program. Under this plan, you select an insurer based on their rates and discounts provided.
Deductible or Self-Insurance Options – This is like regular workers’ compensation but you are allowed to self-fund certain portions of your workers’ compensation coverage. There is much more financial review under these options.
Association Plans – Many associations offer workers’ compensation programs that are driven by above average loss ratios or safety programs. These association plans provide additional resources like safety training and even claims management.
Captive Programs – Captives are designed for large employers and allow the businesses to self-fund their workers’ compensation exposure through the forming of an insurance company.
Sources for the article included:
Business Insurance Magazine
The California Department of Industrial Relations
Bureau of Labor
Martindle- Nolo Research
Business demands may cause you to overlook issues ...
General liability insurance is a critical componen...
Picture this: a safety net in place to protect you...
Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
CA License Number 0646081 | Licensed to do business in California, Arizona, Hawaii, Idaho, Montana, Nevada, North Carolina, Oklahoma, Oregon, Virginia, West Virginia and Washington.
© Copyright 2023 Leap | Carpenter | Kemps Insurance Agency — Privacy Policy | Terms & Conditions.
Merced Office
3187 Collins Drive
Merced, CA 95348
Phone: (209) 384-0727
Additional Contacts
Toll Free: (800) 221-0864
Fax: (209) 384-0401