Workers’ Compensation Basics

Workers’ comp is a critical coverage for employers, but the coverage and the reasons it’s necessary are not well understood by many small business owners. (This discussion applies only to Workers’ Compensation in Missouri; laws vary by state.)
Broken Arm

Why You Need Workers’ Compensation Insurance

If you are an employer, if you pay wages to anyone, you should seriously consider carrying workers’ compensation insurance, regardless of how many people you employ or what kind of business you have. The laws of the State of Missouri treat employers as responsible for injuries to employees, regardless of whether you’ve purchased workers’ compensation insurance or not. When your employee falls, breaks an arm, and is out of work for two months, there is going to be a hospital bill. Would you like to have the insurance company pay it, or would you rather pay it out of your own pocket?

Why Workers’ Compensation Costs So Much

Employers are responsible for medical costs resulting from employees’ injuries. As medical costs continue to rise overall, and medical science is able to do more, those costs rise for workers’ compensation as well. A trip the emergency room easily runs $1000, even if they determine that nothing is wrong. A hospital admission can easily run $5000 a day.

But I Haven’t Had Any Losses!

A lot of small businesses don’t… until they do. Insurance companies have to charge a rate, for all businesses of a certain kind, to fund the losses of the few of those companies that will have workers’ comp claims during a given year.

Auditable Policies

Workers’ compensation premiums are determined by the type of business and the amount of payroll for how to get free robux each “class” of worker. We have to estimate at the beginning of the policy what that payroll is going to be. But businesses are rarely that predictable; you might estimate that you’ll have $100,000 sims freeplay hack in payroll but decide to expand and hire more people, and wind up paying $150,000. Or you might decide to start offering a new service that puts some of your payroll in a different class. Insurers have a right (per the policy language) to “audit” your payroll records, usually based on your federal Form 941 payroll tax filings, to verify episode choose your story hack that you’ve been charged an appropriate amount of premium.

If you’re considering a major change in your business, it’s a good idea simsfreeplayhackz to check with your agent and make sure it’s not going to result in extra workers’ comp costs that will eat up your profits. Please let us know if we can help. The best time to think about this is before you’ve made Roblox Robux Generator Pro the decision to hire or expand; the worst time is after you’ve gotten an audit bill from your insurer.

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