Workers' Compensation

Workers’ compensation is a type of insurance that all new employers need to provide for their employees. Therefore, it is important to understand what it is, and how it covers you and your employees from costly misfortunes.

If an employee is injured while at the workplace, he or she will need to be insured to cover all medical and rehabilitation expenses. Workers’ compensation is a form of insurance that will cover all these expenses, and it will in some cases cover lost wages. As an employer, it is important to provide this type of insurance to your employees because it will give you, and them, peace of mind. Since this insurance will be covering all costs due to an injury on site, your employee gives up his or her right to sue your business for negligence. This is a win-win for all parties involved because of the time and expense that comes along with a lawsuit.

The cost of workers’ compensation varies among occupations due to “risk classification.” Two factors determine the “risk classification” for your workplace: severity of injury and frequency of injuries at work. Typically, a state will use the following formula to calculate rates: classification risk, multiplied by 1% per $100 of an employee’s payroll. Your business’ safety history, if you offer health insurance, and other factors determine if your premiums can be increased or decreased. Most importantly, if you have one or more employees who are not named partner or a business owner, you are required to purchase workers’ compensation.

Please give us a call at (615) 443-3849 to schedule an appointment to discuss workers’ compensation. At THW, we are here to answer all your questions and meet your all of your insurance needs!