Workers’ compensation insurance is a benefit that companies pay for to cover their employees when they fall ill or get injured on the job. If you’re an employer, then here are some of the facts you should know ahead of time before you visit an independent insurance agency:
- This policy is required for all employers.
The employers are required to get this policy for their employees, but the type of coverage can differ for each state. There are also differences in what types of injuries can be covered as well as the statutes of limitation.
- States administer workers’ compensation programs.
The employers will pay the premium into state workers’ compensation funds, and that disburses the benefits to the workers who become injured or ill while on the job.
- Premiums are based on state rates.
Regular policies from an insurance agency in Rochester, Minnesota can vary depending on various factors. The same applies to the workers’ compensation policy. Its premium can vary depending on certain factors, and in most cases, it is based on state rates and employer classification. The employer’s gross payroll, as well as the frequency and severity of the injury or illness, can highly affect the cost of the workers’ compensation benefits, too.