Why You Need workers compensation Insurance

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Workers Compensation Insurance covers:

Employee Injuries
Employee Lawsuits
Lost Wages

REQUIRED BY LAW:

In Michigan, the Workers’ Disability Compensation Act mandates that all businesses with one or more employees are required to carry Workers’ Compensation Insurance. 

FINANCIAL PROTECTION:

This coverage is essential for providing financial protection to both employers and employees by covering medical expenses, rehabilitation costs, and lost wages resulting from work-related injuries or illnesses. 

EMPLOYEE WELL-BEING:

Workers’ Compensation Insurance not only ensures that employees receive prompt medical treatment and compensation for work-related injuries or illnesses, but also fosters a culture of safety and well-being in the workplace.  By prioritizing employee health and safety, businesses demonstrate their commitment to their workforce, which can lead to higher morale, job satisfaction, and employee retention.

LEGAL LIABILITY:

Workers’ Compensation Insurance provides essential protection for businesses by mitigating legal risks related to workplace injuries or illnesses. By ensuring that employees are covered in the event of such incidents, businesses can avoid potential lawsuits and legal disputes. This coverage serves as a proactive measure to safeguard the business’s financial stability and reputation by demonstrating a commitment to employee welfare and compliance with legal obligations.

Standard Workers Compensation Insurance Coverages:

Wage Loss Benefits:

In the event of illness or injury resulting from work-related incidents, your employees may be eligible for benefits that cover a portion of their lost wages. In Michigan, the standard wage replacement rate is typically 80% of their pre-injury earnings.

Total & Permanent Disability:

Employees who experience total and permanent disability due to work-related injuries or illnesses may qualify for benefits.  Such disabilities may include total blindness, incurable mental illness, loss of two limbs, or the complete and permanent loss of use of two limbs. These benefits usually amount to 80% of their pre-injury wages for a maximum duration of 800 weeks.

Death Benefits:

In Michigan, when an employee passes away due to a work-related injury or illness, their surviving dependents may be entitled to death benefits for a duration of 500 weeks.  In cases where there are still minor dependent children, the benefits may extend beyond this period.  These benefits are typically calculated as 80 percent of the deceased worker’s pre-injury, after-tax average weekly wage, with minimum and maximum requirements. The family may also receive reimbursement for reasonable funeral and burial expenses, capped at $6,000.

Potential Savings to Explore:

Insurance discounts can differ depending on the insurance provider you select.  It is important to note that not all carriers offer the same discounts.

Flexi-Bundle™ & Save:

Flexi-Bundle™ Discount:  Combine up to four insurance products and select from up to four insurance carriers.

Frequently Asked Questions

Each state administers its own Workers’ Compensation program through a commission or board, with operations varying from state to state.  Typically, these state agencies oversee businesses’ compliance with Workers’ Compensation laws, collect accident data, and render final decisions on cases.  In many states, employers are required to maintain accident records, report incidents to state agencies, and notify their insurer within a specified period.  Businesses covered by Workers’ Compensation can easily request a Certificate of Insurance as evidence of coverage when necessary.

When a business purchases a policy, the premium (price) is initially estimated. To ensure the correct premium is charged, insurers conduct an audit after the policy period ends. They review the previous period to confirm the accuracy of the upfront pricing. If significant differences in business risk or the makeup of the workforce are identified, the insurer may adjust the premium or provide a credit. 

Covered:

Workers’ Compensation Insurance provides coverage for the employees who sustain injuries while on the job. It includes both medical care and economic loss, such as loss wages.  Employees generally do not have co-pays for Workers’ Compensation Insurance.  Most states have treatment and test guidelines that specify the maximum payment for a given injury.  Temporary disabilities are subject to a limit on the number of weeks for which benefits are paid, as employees typically recover from temporary disabilities unlike permanent disabilities.  In the event of a work-related accident fatality, the deceased employee’s family may be eligible for death benefits.

Not Covered:

Workers’ compensation insurance typically does not cover injuries that occur outside of work-related activities or are not directly related to employment duties. Additionally, it may not cover injuries resulting from willful misconduct, intoxication, or self-inflicted harm. Certain states have specific exclusions, so it’s essential to review the policy and state regulations for a comprehensive understanding of what is not covered.

In Michigan, the Workers’ Disability Compensation Act mandates that all businesses with one or more employees much carry Workers’ Compensation Insurance.  This coverage is essential for providing financial protection to both employers and employees in the event of work-related injuries or illnesses.

Details And Exceptions:

  • Sole Proprietorships:  Under the Workers’ Disability Compensation Act in Michigan, employees of a sole proprietorship are covered.  However, the sole proprietor, who is the business owner, is considered self-employed and therefore not classified as an employee.  As a result, the sole proprietor is not covered.
  • Small Corporations: In Michigan, under specific circumstances, named partners and corporate officers who are shareholders of small, closely held corporations may be eligible to exempt themselves from Workers’ Compensation coverage. Additionally, certain family members of an employer may also qualify for exemption.  However, it’s important to note that all other employers and employees in Michigan are subject to the law and must comply with the requirement to carry Workers’ Compensation Insurance.

You have two payment options:

Option 1:  Click the Carrier tab, scroll to locate your carrier. Most carriers accept online payments via check, credit card, or ACH.  Click on your carrier’s name and proceed to make your payment.

Option 2:  Click the Customer Center tab. Scroll down to find the Input1 icon. Input1 offers digital payment options, including ApplePay and eWallet.  Click on the Input1 icon, log in, and make your payment. 

Report The Claim by Phone:

  • Click on the Carrier tab.
  • Locate your insurance carrier.
  • Use the carrier’s claims phone number to report the claim.

Report The Claim Online:

  • Click on the Carrier tab.
  • Use the carrier’s claims website link to report the claim online.

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Please Note:

At Insurish, we provide general information on insurance products to help you grasp their different aspects. It’s important to note that this information isn’t an insurance policy and doesn’t pertain to any specific carrier’s policy. It doesn’t alter any provisions, limitations, or exclusions expressly stated in an insurance policy. Descriptions of coverages, discounts, and features are concise. For a comprehensive understanding of specific policy details, we recommend reading the applicable policy and consulting an Insurish agent. Coverages and features vary by insurer and state and may not be available in all states. Coverage for accidents or losses depends on the terms and conditions of the actual insurance policy. References to premiums, losses, deductibles, and costs are illustrative and may not apply to your circumstances. Insurish is not liable for the content of third-party sites linked from this page.