Every businessowner wants to provide a safe and healthy work environment for their employees. After all, these workers make the business run smoothly and thrive every day. But are you confident that your business and those employees are protected if an employee is hurt on the job?
This is where Workers Compensation and Employer Liability insurance is needed. And, by Louisiana state law, Workers Compensation and Employer Liability insurance is required if you even have just one employee.
Beyond the legal requirement, if you don’t have Workers Compensation and Employer Liability insurance to protect you, the business is responsible for all the medical bills, and lost income, and maybe even more, to an injured worker, plus any state or OSHA fines and penalties for not complying with the law.
In the end, the cost of not having Workers Compensation insurance could cost far more than the cost of a Workers Compensation and Employer Liability insurance policy.
Why Does Your Business Need Worker’s Compensation and Employer Liability insurance?
Beyond the statutory requirement, Workers Compensation and Employers Liability covers the injuries to an employee arising out of the course and scope of their employee (Workers Compensation) and any negligence, or liability to that employee, that could be proven against the business, as the employer (Employer Liability).
As previously noted, Workers Compensation is mandatory in Louisiana for any business with just one employee, regardless if that person is full or part-time. There are a few employee classifications, where Workers Compensation can be waived, including:
- You are a sole proprietor and do not have any workers
- Certain employees of a private residence
- Certain employees of a private unincorporated farm
- Certain musicians and performers
- Employees covered by certain federal laws
- Employees of railroads or other vessels in interstate or foreign commerce
- Crews of airplanes engaged in crop dusting or spraying operations
- Uncompensated officers and members of boards of directors of certain non-profit organizations
- Uncompensated officers and members of boards of directors of certain non-profit organizations
- Landmen
As you can see, there are only a handful of exceptions to not have Worker’s Compensation insurance.
What does a Workers Compensation Policy Cover?
Quite simply, the Workers Compensation portion of a Workers Compensation and Employer Liability policy provides protection to a business’ costs from employees whom are injured or become ill “in the course and scope” of their job for costs from:
- Emergency and on-going medical expenses,
- Lost income and wages,
- Rehabilitation expenses
- It also pays funeral costs and death benefits to families of employees who are killed on the job.
The Employer’s liability portion of the insurance policy covers legal defense costs when an employee blames your business’s negligence for their injury or illness. Those costs could include hiring a lawyer, court fees, and paying a settlement or judgment. This part of the coverage protects against negligence lawsuits from employees over work-related injuries and occupational diseases. In other words, if an employee sues over an injury, this policy will help pay your legal costs.
Remember, when an employee receives workers’ compensation benefits, they usually agree not to sue their employers. But that doesn’t mean you’re immune to lawsuits. A Workers Compensation and Employer Liability insurance policy protects against these risks, and transfers the costs of medical bills or attorney bills to the insurance company.
How to Get Workers Compensation Insurance
A Workers Compensation and Employer Liability insurance policy can be purchased through a local insurance agent. It is important that your agent understands not only the Workers Compensation laws, but also the insurance policy itself, and most importantly, your business. You want to be sure you get the right coverage.
Rates for Workers Compensation & Employer Liability insurance vary depending on the size of your business and your industry as well. Employers with high hazard work, like roofers, will have higher Workers Compensation rates than businesses with lower-risk operations, like accountants and consultants.
Takeaway
Workers Compensation & Employers Liability protects your business, by protecting the people who make your business what it is. If you have any employees, don’t risk going without Workers Compensation & Employers Liability insurance coverage, or you’ll leave your business exposed to serious risks and costs, and injured workers potentially without the medical care they need.
To ensure you are properly covered for your Workers Compensation and Employer Liability risks, or any other hazards, contact your local independent insurance agent today.
