Category Archives: Workers Insurance

Self Insurance Basics What it is and How it Works

Self insurance is defined as setting aside funds to cover the insurance requirements of a business or organization. This is a viable method of self funding risk management, but it comes with some caveats, statutory obligations and a need for a good working group of management systems.

The self insurance option

Self Insurance is regulated by law, giving exemptions employers from compliance with a range of statutory obligations relating to workers compensation insurance. A licensed employer doesn’t pay insurance premiums for workers compensation. They manage their own risk and control compensation claims administration for their employees.

There are good financial and administrative reasons for this approach. The suggested viable size for self insurance for Australian employers is 750 employees. This is a large number of people, and the premiums involved can be significant outlays. In effect, the employers take on the liabilities for workers compensation on the basis of assuming responsibility for coverage.

This is an efficient and popular method of dealing with workers compensation. It’s also very practical, and allows employers to manage the costs and issues in-house. The actual statutory requirements are based on clear cut regulations, and licensing is administered by the various regulators.

Self insurance in practice

In practice, self insurance needs a level of customization in relation to the type of industry of the employer.

There are two basic fields of administration:

• Employee programs: A series of programs regarding workers compensation, injury management and return to work are part of the standard mix of in house operations. OHS management systems, on-site injury management practices and appropriate industry-specific of workplace safeguards are also required.

• Financial management: The financial aspects of self insurance are based on audit criteria established by statute. The employer must provide information demonstrating the financial state, sufficient to prove that the business is able to meet the required performance criteria for self insurance. This requires evidence of an ongoing ability to meet the financial obligations of self insurance. The employer must have sufficient capital to underwrite, pay and administer claims.

Note: A self insurer’s license will not be granted unless the regulator is satisfied that the employer is fully compliant.

Basic self insurance management

Although self insurance management can look complex at first, it’s based largely on basic common sense business practices. Compliance with statutory requirements is unfamiliar territory for most businesses, and ensuring compliance is absolutely essential for self insurers. Many businesses outsource their administration functions in this area, engaging professional safety consulting advisers to manage these functions.

The best safety consultants also provide the full management spectrum for self insurance.

These services include:
• Compliance management
• Safety consulting
• Safety management systems
• Risk management
• Audit programs

Self insurance is rapidly becoming the preferred option for major employers. If you’re considering self insurance, a professional consultancy will be able to provide useful advice regarding your needs.

Finding a Workers Comp Agent

If you are going to start a business that is going to require you to hire employees then you are going to be required to carry workers compensation insurance. Workers compensation is insurance that provides coverage for an employees’ lost wages and medical bills in the event that they get hurt on the job. In return for this compensation, the employee waives the right to sue the employer for negligence.

Knowing that as an employer you have to carry worker’s compensation insurance is one thing but finding a competent worker’s comp insurance agent is another story. This article will cover some steps to take to help you find the proper insurance agent.

The first step to take is to go to the workers compensation website where you will find information on state requirements and a list of agents. Another avenue that you can take is to talk to other local business owners and get references of what insurance agent they use. You can ask questions and determine if they are satisfied with their agent or if they have issues with them. You can take agents names off the list on the website and make cold calls to the agents.

You can ask them about the services they offer and what the cost is going to be and compare the quotes and information you receive. Be sure to ask the agents if they offer discounts for multiple policies. This is a great way to save money on services that you must have.

Another option that you have is to call or visit your states’ department of insurance for information on workers comp insurance requirements and agents. The advantage of this is that they will have a list of agents that are already licensed to sell workers comp insurance in your state. This site will also rate the agents and let you know what complaints if any have been filed against them.

Being a business owner with employees opens up a completely new arena of responsibilities. You want to give your employees the best coverage that you can afford so that they are protected. Employees who are well cared for make better employees. They will work harder and produce more for a company they know is taking care of their interest. Protecting an employee’s health and income will put them at ease and take a lot of stress out of their life.

Workers Comp Insurance Claims Details You Need to Know

For an employee that has been injured or suffered some sort of illness because of their working environment they will have the opportunity to file workers comp insurance claims. Employers all across America are required to have some sort of workers insurance within their business to assist in protecting themselves against a claim that has been done by an employee that was either injured or became ill while working.

Even though workers comp has been made available to all employees eligible it does not mean that all injuries that have occurred at work can be compensated. There are many injuries and illnesses that are covered, but there are many more that are not. Before you take the time to submit your claim make sure that your injury or illness is one that is eligible for being claimed under the various terms of the workers compensation laws.

Some injuries and illnesses that are eligible for acceptance of a claim include physical injuries that occurred at work, occupational diseases such as asbestos exposure, carpal tunnel syndrome, and also stress and mental injuries that are caused by work.

As for injuries that are not covered there are several including injuries that occurred because of employee being under the influence of either alcohol or drugs, injuries caused by negligence or being irresponsible, and some states even don’t cover for injuries that occurred on the way to or from work.

When you’ve been injured at work you must inform your employer and got the medical attention needed before you can have your claim reviewed. Most laws state that is shouldn’t take you more then three months or twelve weeks to have everything processed and this has been said to be the maximum time frame you have for liability payments. The payments should be paid by your insurance company throughout your claim process as well.

Insurance claims can be a little tricky when you are trying to determine everything that you will be covered for and every business should make sure to inform the employees exactly what their insurance entails. It will be the employee’s responsibility to ensure that they fully understand their insurance so that they are aware of what they can and can not claim for.

No business wants to find themselves being destroyed by any workers comp insurance claims so make sure that your business has taken the proper measures to protect your employees and your business. With a little understanding behind your insurance and what can be claimed you can save yourself from any major court battles. By having insurance within your business you are already ahead of the game for protecting everyone.

How to Find Affordable Workers Compensation Services

There are different reasons a company might need workers compensation services. You might be a sub-contractor of a building project or have seasonal workers. In that case signing up for monthly packages instead of employing a payroll assistant just makes sense and saves you a lot of money as well. Getting the right service is essential, so you can focus on the work, taking on employees and managing them. If you are looking for affordable workers compensation services, you can find many offers online. But some things should be taken into consideration, to make sure that you will get the best value for your money.

There are different workers comp packages available through professional firms. You will need to review your requirements and choose based on your needs. You might only need the administration features, but in some cases you would like the material to be prepared for your yearly tax report as well. That is why you have to find workers compensation service that has experienced staff and enough knowledge to get you the most benefits.

You might be looking for local services, to ensure that the company knows about the different legislations and requirements you have to comply with. But these will vary depending on your industry and company specifications, so make sure that you are consulting with a professional accountant within the firm before you sign up for the workers compensation service. The software they use should fit all the requirements set by the government, and you also have to get the most benefits, allowances and grants for employing people as well.

In some cases you will need to take on extra staff, and their registration, insurance and payroll issues might come with extra work on the admin site. If you are signing up for a complete workers compensation package on a monthly basis, you can ensure that all the details are going to be updated, and the records kept accurately, according to the current law.

Confidentiality is another very important aspect when it comes to payroll and your employee details. You don’t want the competition to find out about the wages you pay your employees, or the special benefits you use to keep them. Make sure that you are signing a confidentiality agreement with the workers comp service, to protect your business. Find out about the firm, their reputation and customer feedback before you decide to avoid disappointments.

Different requirements can be set by the government regarding to insurance and responsibilities, especially if you are in the construction industry. If your employees are not getting this benefit, you might need to face a penalty, so make sure you are aware of the law and special needs for administration. If you would like the compensation company to review your current payroll system and provide you with useful advice, you can also sign up for a complete package. In that case you can benefit from the service multiple ways, and even save money on tax or insurance. Paying a little bit extra for professional advice can actually save you money on the long run.