How Does Workers’ Compensation Insurance Protect Your Business & Employees

Workers’ compensation insurances provides valuable benefits to your employees while protecting your small business from legal exposure.

How Does Workers’ Compensation Insurance Protect Your Business & Employees

A workers’ compensation insurance policy provides benefits to employees for injuries and illnesses arising out of and in the course of employment. The policy may provide payment for medical treatment, temporary and permanent disability, and death benefits. Workers’ compensation insurance is required in almost every state.

Workers’ compensation provides valuable benefits to your employees while protecting your business. Each state’s statutes and regulations, as they apply to workers’ compensation, vary significantly.

Claim Kit Information

To help you remain compliant with your state’s workers’ compensation laws and regulations, required posters are available to you online. It is your responsibility to post this information as required by the state or states in which you conduct business.

To get information on the workers’ compensation laws in the state you operate in, obtain your Claims Kit and select the state where your business is located. The information on the right side of the page includes state required bulletins and posters that need to be printed and displayed in your place of business.

Loss Control Services & Resources

Did you know that, according to NCCI, the average workers’ compensation medical claim in 2015 was approximate $28,500? Many workers’ compensation losses can be prevented. State Farm offers free resources to small business owners — such as an Employee Safety Program Guide and an Accident Investigation Report — that will help you identify and mitigate some common causes of business and workers’ compensation losses.

Audit Awareness

Workers’ compensation is an auditable policy. This means that the initial premium is based on your estimated payrolls for the upcoming policy period. At the end of the policy period, an audit is performed to ensure the final premium reflects the actual payroll amount.

State workers’ compensation laws and other governing bodies require the policy be audited to ensure employers are paying for their actual exposure. Differences between the estimated information and the actual information obtained through the audit may result in payment of an additional premium or a premium refund. In addition, the payroll on your current policy may be adjusted to reflect the updated information. State Farm will answer your questions and help guide you through the insurance premium audit process.

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