Understanding the significance of workers' comp for both individuals and companies is essential for choosing appropriate coverage. This comprehensive guide simplifies the process of obtaining workers' compensation insurance, making it more accessible and less cumbersome for those seeking the right protection.

Who Can Benefit From Obtaining Workers Comp?

Companies in industries where physical labor is prevalent, such as construction, roofing, manufacturing, and healthcare can benefit immensely from workers’ comp insurance because of the high potential for injury. However, it's usefulness not limited to these sectors alone.

Most states mandate that businesses with one or more employees carry workers' compensation insurance. This requirement varies based on the state, the number of employees, the type of business, and the nature of the work.

Deerfield works with companies like The Hartford, CNA, and Zurich Insurance to find the best policies available for your needs. We compare pros and cons of workers’ comp insurance with various firms so you can rest assured you are getting the best coverage.

For more information on considerations to implement when getting workers comp for your specific industry, read more here.

Regulations for Workers Compensation in Texas and Other States

When looking for a workers’ compensation policy, many businesses end up deciding on a one-size-fits-all type of policy. This can actually be a detriment, as workers’ compensation legislation varies from state to state. Industry and payroll can also have an effect on workers comp insurance price.

Knowing your local laws surrounding workers comp insurance in Florida, Texas, Wyoming, and other states can save you significant time and money. With Deerfield though, you don’t have to know all the details of state-specific laws. We will take your company’s location into account when we write your policy, covering those difficult-to-navigate Texas workers comp requirements.

Read more about state-legal workers comp requirements here.

Fraud Protection On Workers Comp Policies

Workers' compensation fraud is a significant problem, costing billions of dollars annually. Fraud prevention is crucial to minimize these losses. Some of the common types of workers' compensation fraud include claim fraud, employer fraud, and insurance carrier fraud. 

To prevent these, businesses can establish procedures for reporting accidents, choose a designated workers' comp medical provider, run thorough background checks on potential employees before hiring, consider installing video equipment, and consider drug testing.

Read more here to see how Deerfield Advisors can assist in setting up these measures and provide the best policies available for your needs.

Common Law vs. Workers Compensation

Common law and workers' compensation legislation serve different purposes in the legal framework. Common law refers to the body of statutes established by judicial decisions rather than legislative acts.

It evolves over time based on court rulings and precedents, and it applies broadly across jurisdictions. On the other hand, workers' compensation legislation is specific to employment matters, providing benefits and protections to workers who suffer injuries or illnesses due to their work.

This legislation varies by state and country but generally requires employers to provide certain benefits such as medical treatment, wage replacement, and disability compensation to eligible workers.

Learn more here.

Workers Compensation: Contractors and W-2 Employees

While workers' compensation laws are designed to protect employees who suffer work-related injuries or illnesses, independent contractors generally do not qualify for these benefits. However, there are exceptions, such as when companies require independent contractors to carry their own workers' compensation coverage.

Read more here about the cultural implications of hiring W-2 employees versus independent contractors, the role of government regulations in determining worker status, and the decision-making process for businesses when choosing to hire a W-2 employee or independent contractor.

Restaurants and Workers Compensation

Workers' compensation is a crucial aspect for restaurant owners to consider, playing a pivotal role in protecting both their employees and the business itself. In the fast-paced and dynamic world of restaurants, workplace injuries and accidents can unfortunately occur frequently. These can range from cuts, abrasions, and scrapes to burns, slip and fall injuries, overexertion, and muscle sprains and strains.

Given the high-demand nature of restaurant work, where employees are on their feet most of the day, and kitchen workers deal with hot surfaces and dangerous objects, having a robust workers' compensation policy is essential.

Learn more about workers’ compensation policies for restaurants here.

Injuries Not Covered By Workers’ Compensation

Worker's compensation is a crucial aspect of employment, providing financial assistance for employees who suffer work-related injuries. However, there are certain types of injuries that are not covered by this system.

For instance, minor injuries that require only first aid treatment and do not necessitate medical attention are often not included. Similarly, injuries that result from an employee's voluntary intoxication, such as alcohol or drug use, are typically not covered. Another exception is injuries that go unreported, as workers' compensation requires a formal report of the incident.

More details are available here.

Overlooked Topics in Workers’ Compensation

Workers' compensation is a broad field with many nuances, and there are several overlooked aspects that warrant attention. One key area is the changing face of workers' compensation, particularly in relation to disability definitions.

The Americans with Disabilities Act (ADA) has expanded the scope of disability beyond traditional categories like blindness or wheelchair-bound status to include a wider range of conditions, creating confusion around what constitutes a disability. This has led to grey areas where it becomes difficult for employers to determine an employee's disability status, and it has been exploited by some lawyers to apply the law in ways that circumvent traditional workers' compensation.

Another issue is the concept of the "second injury", which refers to a situation where a worker suffers a subsequent injury due to a prior work-related injury, making them unable to return to work. Most states now recognize this as a special case and have implemented "second injury funds" to compensate workers in such scenarios.

Learn more about overlooked topics in workers’ compensation here.

Changes in Workers Compensation to Look for in 2024

Workers' compensation is a stable property and casualty line, but there are signs of changes in the industry that could impact the risks associated with it. Here are some key trends to watch out for in 2024:

1. Frequency Rates: Accident frequency rates have generally trended downward over the past 20 years, resulting in rate reductions for many businesses. However, recent data indicates an uptick in workplace injuries, suggesting a potential increase in the frequency of claims and higher premiums for businesses.

2. Medical Inflation: While most workers' compensation medical costs are controlled by fee schedules, there is growing concern about medical inflation. Illinois, for instance, has an automatic inflation adjustment in its medical fee schedule, leading to increased medical service costs.

3. Evolving Presumptions: Presumption laws regarding first responders have expanded to include conditions such as cancers and PTSD. These presumptions shift the burden of proof, potentially leading to more claims and increased risks for businesses.

These trends and more suggest that the risks associated with workers' compensation could change in 2024, with potential implications for businesses. It's crucial for businesses to stay informed and adapt their strategies accordingly to mitigate these risks.

Read more here.

Workers Compensation Audits

When the time of year for work comp audits comes around, you need all the information you can get. Audits can be frustrating if you don’t know what information and documents to gather, and other preparations to make. Thankfully, we at Deerfield have provided some information about workers’ comp audits below.

General Information on Workers Compensation Audits

Workers Comp Audits and Non-Compliance

Step-By-Step Workers Compensation Audits

Deerfield Advisors Can Help With Workers Comp Quotes

Don't let the complexities of workers' compensation insurance intimidate you. At Deerfield Advisors, we simplify the process of obtaining the right coverage for your business. Contact us today to get a workers' comp quote and start protecting your business and your employees.