As a Pennsylvania small business owner, you know you need many different types of insurance to protect yourself and your business.
One type of essential insurance for any business is worker’s comp insurance. Worker’s comp insurance is designed to provide financial protection for employees who are injured on the job or who suffer from an occupational illness.
In this blog post, we will discuss the basics of workers compensation insurance in PA so that you can make sure your business is adequately protected.
What Is Covered By Worker’s Comp Insurance?
Worker’s compensation insurance provides coverage for medical expenses related to work-related injuries or illnesses, as well as lost wages and death benefits in the event an employee dies due to a work-related injury or illness. It also offers protection from lawsuits filed by employees against their employers, though it does not cover intentional acts or gross negligence committed by employers.
Who Needs Worker’s Comp Insurance?
The law for workers compensation insurance in PA requires any employer with one or more employees must carry workers’ compensation insurance on their staff. This includes part-time and seasonal employees and independent contractors, even if they are paid on a per-project basis. Therefore, you must purchase worker’s comp insurance before hiring any staff members; failure to do so could result in hefty fines and penalties from the state of Pennsylvania.
How Much Does Worker’s Comp Insurance Cost?
The cost of worker’s compensation insurance varies depending on various factors, including the size of your business, the number of employees, and the industry you are in. Most companies pay premiums based on payroll calculations—the higher your payroll costs, the higher your premium will be. Additionally, some states require employers to purchase additional “stop loss coverage,” which provides extra protection against high claim costs.
How Do I File A Worker’s Comp Claim?
If an employee has been injured and misses work due to an illness or injury in Pennsylvania, filing a worker’s compensation claim can help provide financial relief. The State Workers’ Insurance Fund administers this process. It typically consists of three steps: reporting the injury, submitting a Claim Petition to the state workers’ comp office, and petitioning for a hearing if the claim is denied.
After the reported injury, employers have 15 days to respond in writing if they have accepted or denied a claim. An attorney specializing in worker’s comp cases, particularly for employers, can ensure that all of these requirements are met and provide peace of mind throughout the process.
Conclusion: Pennsylvania Small Business Owners Should Enroll In Worker’s Comp Today
As you can see, workers compensation insurance in PA is an essential investment for small business owners, not one to be taken lightly. Not only does it provide injured workers and their families financial protection, but it also protects employers from costly lawsuits stemming from workplace injuries or illnesses.
If you are a small business owner looking for more information about workers’ compensation insurance for your company, don’t hesitate to contact a reputable insurance broker today. They can help answer any questions about this important form of coverage and help ensure that your business has all the protection it needs to thrive.
