A Few Thoughts on Worker’s Comp
When sitting down with clients and potential clients, an area of insurance that always sparks quite a conversation after General Liability coverage is a discussion about their Worker’s Compensation Insurance needs. Regardless of what type of business you operate, if you have employees, you are obligated by state law to have Worker’s Compensation Insurance. The purpose of worker’s compensation insurance is to provide coverage for your company’s employees’ medical expenses and some portion of their lost wages should they become injured while on the job. Think of worker’s compensation insurance as a state-regulated, no-fault liability insurance in Phoenix which will cover an employee’s medical expenses, rehabilitation services, lost wages or death resulting from a work-related illness or injury.
Regardless of whose fault it is, should one of your company’s employees suffer an injury on the job, they are eligible for worker’s compensation benefits. The same worker’s compensation benefits will also apply should an injury or illness occur in the performance of their job while conducting their employer’s business. In most cases, this type of coverage protects an employer from being sued by an injured worker. Also, it would be very prudent for your company to research and learn what set of rules regarding worker’s comp are in your state’s guidelines, and if your company sends workers into other states, to make sure your carrier is aware of this so they will be covered in those states, as well. After presenting the worker’s comp quote, complete with the possible codes that could be used, we understand the amount of time involved in keeping the employees’ time associated with those codes can be quite taxing on even the best of owners. One thing we hear quite often, in fact, after discussing all the worker’s comp options is clients telling us maybe it’s just easier to hire independent contractors and 1099 them, and that will relieve them of all their obligation concerning worker’s comp.
With the rules and regulations currently in place, it is just not that simple anymore. The state and worker’s comp carriers have very strict guidelines as to what defines an independent contractor. To be absolutely clear on the independent contractor’s rules, we suggest you consult a labor attorney and also contact the state compensation department to obtain their rules and guidelines. When performing the day-to-day operations of any business, we understand there are numerous responsibilities that you, as the owner, are responsible for, from looking for new clients, keeping your current clients satisfied, maintaining inventory, ordering, payroll, and everything in between. The one area that an owner must keep on top of is their company’s workers’ compensation business insurance in Phoenix. Work-related injuries can be tragic at times, and as most owners can attest to, they can quickly become a legal nightmare. These work-related injuries can vary dramatically from one type of business to another, from simple slip-and-fall accidents to repetitive motion injuries, falling off a ladder or a roof, a machine entanglement, or a tragic death occurrence. One of the most common claims, by far, is overexertion injuries, costing American companies over $15 billion each year. That’s why it’s important that a company owner choose a reliable worker’s compensation insurance carrier for their company’s worker’s compensation insurance plan.PJO Insurance Brokerage has access to several national worker’s compensation insurance carriers and also has markets for those hard to place companies including such industries like roofers insurance in Phoenix, welders, short distance or long haul drivers. If you are looking for someone to work with you on your worker’s comp needs, please call or email us, and let PJO Insurance Brokerage assist you in finding an insurance carrier to fit your company’s worker’s compensation insurance needs
Patrick O’Neill – Owner
107 Via Estrada, Unit A
Laguna Woods, California 92637