The number one mission for your startup: protecting your employees – they are key to your long-term profit.
Workers’ compensation insurance is a no-fault coverage designed primarily to pay medical treatment opens in a new window costs for on the job injuries and illnesses, and replace some income in the event of collateral disability.
In the modern world of the startup, employers compete for labor with “balanced lifestyles” and warm, cozy benefits. On the job injuries and illnesses are serious business, and they should be addressed in that manner. The insurance carrier can help create a “safety culture” that measures success as employees going home healthy at the end of every day. It sounds warm and cozy, but safety can be your number one employee benefit.
Workers comp carriers have in-house technical lending libraries to help start up ventures design safety cultures from day one.
Once designed, the safety culture and benefits need to be communicated to new employees at orientation and long-term employees on an ongoing basis. Why? Because benefits like workers comp are often forgotten by employees, they cover many health issues:
- Medical bills for on the job injuries.
- Medical treatment for illnesses associated with job hazards (asbestos or hepatitis for example).
- Wages for lost time for accidents or illnesses.
- Employers’ Liability: illness or conditions brought back to workers’ homes (spouse catches the job illness by exposure to the worker).
New employees need to be told of these benefits, and current employees reminded, as part of the overall safety first benefit.
BENEFITS OF WORKERS COMP INSURANCE TO START UP COMPANIES
- The employer is financially responsible to pay medical expenses for on the job injuries. There is no statutory limit to these costs, so transferring this risk to an insurance company is good risk management for any start up company.
- Although there are statutory limits to the disability payments under workers comp, these payments may be ongoing for ten years. Most startup companies do not budget for this long-term expense.
- Rehabilitation, physical therapy, and other recovery/back-to-work strategies are provided by the insurance carrier.
- Although many claims are predictable and preventable, many are not. Insurance covers these situations too.
- Loss control services, if properly embraced, help the insurance company and you reduce the hazards your employees face. Insurance company services may include process hazards, personal protection equipment, lessons for employees, even fire safety and evacuation routes. Use these services and any loss control library the insurance company may have available.
HELP SELL YOUR SAFETY CULTURE TO YOUR EMPLOYEES AS A BENEFIT.
The start up company, like seasoned employers, may be held liable for injury conditions brought back home or illnesses contracted by family members. Workers comp policies have employers’ liability sections which provide legal counsel and pay damages on behalf of the employer. Again, this exposure has an unlimited cost potential.
The insurance company pays for claims costs, investigation, and legal fees.
COVERAGE MANDATED BY MOST STATES
These statutory responsibilities can be fatal to an unprotected mature company; a startup cannot afford to operate without proper workers comp opens in a new window insurance.
In your final analysis of this coverage consider:
- It is legally mandatory to provide workers comp in most states.
- Claims costs can be limitless; insurance is designed to accept this risk on your behalf.
- Accept the help you need to make a safe workplace; show your employees you care.
- Protect employee’s families against the cost of industrial diseases when brought into the home.
- Let the professionals handle investigations into employee fraud or malingering.
- Create a safety culture and communicate these benefits to employees.
Analyze your workers comp needs for your startup. Call Marine Agency now to help design a program and choose your most appropriate insurance company.