Small Business Workers Comp: Are You Prepared?

Your small business is focused on brainstorming innovative ideas, generating revenue, and cutting costs to stay ahead of the current economy.  The last thing you want to think about is a workers' compensation claim.  But if one does come up, we want you to have resources to help you know what to do and what your role is.  That way, you can spend less of your hours filling out paperwork, and stay focused on building your business.

Workers' compensation, what is it?

Workers' compensation is a state-run program that assists a worker who suffered an injury at work receive medical care, rehabilitation, compensation for lost earnings, and potentially other support related to the injury.  Since it is state-mandated, employers should be familiar with state law and procedure regarding small business workers comp claims.  You can find this on the state government website or on the U.S. Department of Labor listing of workers' compensation laws by state.

Are all businesses required to carry workers' compensation insurance?

Most states require states to buy the insurance; however, in some states, small companies (with just a few employees) are not legally required to carry workers' compensation insurance.

Below is a list of employer-related workers' compensation resources:

• Handling a Claim: Employer and Employee Responsibilities: Here you will find a useful primer on what role is, as an employer, to prevent and respond to workplace injuries.  Also, you can read about what is expected of your employees in a workers' comp situation.

• Workers' Comp Benefits: FAQ: Ranging from questions such as "who pays for benefits" to "whether an employee can sue an employer in court" for a work-related injury, this FAQ page features questions that your business or employees may have when a workers' comp claim arises.

• The Workers Compensation Dictionary: Learn the basic terms you will see in a claim.  You can look up terms such as Average Daily Wage (ADW), Average Weekly Wage (AWW), and Permanent Partial Disability (PPD) as they relate to a claim filed by an employee.

Related Resources

• Workers Compensation Death Benefits (provided by Law Offices of Gallner & Pattermann PC)
• Workers' Comp & Alternative Medicine (provided by The Klein Law Group PC)