Workers' Compensation Insurance

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Workers' Compensation Insurance

As a business owner, you know that your employees are the backbone of your operations. And, of course, you do your best to keep them safe. But we all know that accidents in the workplace happen and they are often costly. 

The National Safety Council reported that the cost of work-related injuries and deaths in the U.S. came to $164 billion. Workers' compensation insurance is designed to provide protection—for you and your employees—when the unexpected happens.

How does workers' compensation insurance, also known as workers' comp, protect your business? If an employee happens to get injured on the job, such as at the office or at a job site, workers' compensation insurance can mitigate the risk of financial loss. Even if your employee is working in their own home and gets injured at their desk, that injury could be covered under workers' comp! 

Workers' compensation insurance protects your business from direct lawsuits by employees. In exchange for giving up the right to sue their employer (in most cases), the employee is paid for lost wages, medical care, disability (whether permanent or temporary), and even death benefits. 

If you are a small business owner in Pennsylvania or Maryland with only one or two employees, you may be thinking that you don't need to offer workers' compensation insurance to your staff. In actuality, it is mandatory for most business owners to carry workers' comp insurance if they have one or more employees working full- or part-time.

Keller Brown Insurance Services can help you find the right workers' compensation insurance in PA or MD. Our experienced staff works with businesses of all sizes to find the appropriate right workers' compensation insurance for your business. 

What is Workers' Compensation Insurance?

Workers' compensation is an insurance program required by the state that provides medical care and compensation to employees injured on the job. Each state is in charge of its own workers' compensation program, however, it's important to note that coverage is needed for any state where a business operates. 

For example, if you are based in PA but have a construction job in MD, you'll need workers' comp for both PA and MD. 

In exchange for this coverage, most of the time employers are protected from lawsuits by the injured workers. According to the Insurance Information Institute, "In addition to injuries from accidents, workers' comp covers injuries employees may sustain from other events that may occur while they are working, including workplace violence, terrorist attacks, and natural disasters." 

Like most other states, employees are covered by workers' compensation insurance in PA and MD if they receive an accidental injury while they are on the job. Benefits to employees can include income replacement if they miss work.

Are there exceptions to workers' compensation insurance in PA or MD? 

There are some exceptions to workers' compensation insurance in PA and MD. These exceptions include short-term agricultural workers or executives in certain corporations. Sole proprietors and partnerships are also exempt from workers' comp mandates until they hire employees who aren't owners. 

However, even though exemptions do exist, many businesses opt for workers' compensation insurance because of the broad benefits it provides. If executives, sole proprietors, and partners choose to be excluded from workers' compensation, it's imperative that they carry health, life, and disability insurance. 

Maryland law states that "with few exceptions, every employer in the State of Maryland with one or more employees is required by law to provide workers' compensation coverage for their employees. An employer or employee cannot waive provisions of the Workers' Compensation Law." Pennsylvania workers' compensation law is similar.

If your company is legally obligated to offer employees workers' comp insurance but does not, it could be subject to lawsuits and expensive fines. For example, Pennsylvania's Department of Labor and Industry says that "Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the commonwealth." 

According to the Maryland Workers' Comp Commission, "Employers failing to secure workers' compensation insurance as required by law shall be subject to a fine of not more than $10,000." If you're not sure whether your company is required to offer worker's comp insurance, you can check with one of Keller-Brown's insurance agents. 

Questions we often hear from business owners include "What exactly is workers' comp insurance?" "Where do I find workmans' comp insurance in PA?", and "How much is workers' comp insurance in MD?" You'll find the answers below.

How much is Workers' Comp Insurance in PA and MD?

"How much does workers' compensation insurance cost?" That's often the first question we hear from business owners. The answer is dependent on two factors: Your company's industry classification code and payroll. 

For example, premiums for high-risk employees will be higher than low-risk industries such as libraries and consulting firms. High-risk employees may include: 

• Laborers

• Truck drivers 

• Couriers

• Roofers 

• In-home caregivers

Other factors impacting your rates are based on payroll and various forms of remuneration made to employees as dictated by your state requirements. Your claims frequency and severity also factor into your premium. 

It's important to note that the employer is solely responsible for paying the premium for the workers' comp insurance coverage. In fact, in Maryland, the law states that "Any employer who deducts any portion of this premium from the wages of his/her employee, entitled to the benefits under this law, shall be guilty of a misdemeanor."

Do you have questions about Workers' Compensation Insurance?

Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about Workers' Compensation Insurance or for a free review and insurance quote for Workers' Compensation Insurance. And don't forget, as an independent insurance agency, we represent several top rated insurance companies. We have the flexibility to help you find coverage at competitive premiums for business, home, auto, and more.