One of Your Most Important Policies
Depending on your industry, workers’ compensation insurance may be one of your most important policies. Workers’ compensation insurance provides medical benefits and wage replacement to employees who are hurt or become ill on the job.
This coverage can keep you from paying these hefty costs out of pocket and prevent legal action from disgruntled employees.
Top 10 Workers’ Compensation Terms
As a business owner, it’s crucial to know these top 10 workers’ compensation terms:
- Injury or Illness Report: A worker or supervisor files this report after a workplace injury to document the event and the aftermath.
- Medical-Only Claim: A job-related injury requiring treatment but no missed workdays.
- Lost Time Claim: This is when an employee is injured and cannot return to their duties for a given period.
- Indemnity Benefits: Another name for wage replacement benefits paid to a worker.
- Independent Medical Examination: When a third-party medical professional is brought in to give their opinion on the case.
- Permanent Partial Disability or Permanent Total Disability: Permanent partial disabilities refer to injuries that have ongoing effects while still allowing a person to work, while a total disability prevents someone from ever returning to gainful employment.
- Temporary Partial Disability or Temporary Total Disability: Temporary disabilities are shorter term and, similar to the above definition, can either partially affect someone’s ability to work or entirely remove them from the workforce for a period.
- Employer’s Liability Insurance: This type of insurance protects employers from legal costs when an employee sues them for an injury not covered by a workers’ compensation plan.
- Experience Modification Rate: Insurers use this number to calculate a business’s workers’ compensation insurance premium based on its past claim history.
- Premium Audit: A premium audit occurs at the end of a policy cycle to review the number of employees and their positions and determine an appropriate premium moving forward.
Questions About Commercial Insurance?
If you have any questions about commercial insurance, please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont. We would love to be a resource for you!
We give out $25 gift cards for referrals that become our insurance clients.
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