If you have even one employee, you should have workers’ compensation insurance. It provides benefits and coverage for employees if they are injured, become ill or dies as a result of their work. It also protects employers from liability. There are many types of programs on the market these days from federal programs to self-insurance funds to private workers compensation insurance companies. They all have unique differences.
The US Department of Labor Division of Federal Employees’ Compensation provides benefits for millions of employees and postal workers all over the nation. The Office of Workers’ Compensation Programs administers many major disability compensation programs. These programs provide medical care, vocational rehabilitation and lost wage benefits among other benefits for individuals and their dependents who suffer from a work-related injury or occupational disease.
Some major corporations take on the responsibility of paying for their own workers’ compensation claims by setting up self-insurance funds. These funds are subject to the same state workers’ compensation regulations as private companies.
Private Workers Compensation Insurance Companies
The majority of employers take the traditional route and use a private insurance company. They take into account the risks associated with different occupations and a business’s payroll to determine premiums.
There are many types of programs available to businesses of all sizes. Consider hiring a broker or agent to help you determine what path is right for you.