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Over the last couple of years, many states have decreased rates for workers’ compensation.

Here is a snapshot of just some of the states announcing decreased rates this year.

In December, Florida announced rates would be cut in 2020 by an average of 7.5%.

Delaware decreased an average of 12.55%.

Tennessee dropped rates by an average 7.1%.

Oklahoma cut rates by an average of 5%.

Oregon decreased rates by an average of 8.4%.

Montana cut premium rates by 8.6%.

Louisiana announced rates would drop by 8.4% by May 2020.

New Hampshire rates declined by 9.6%.

Decreased workers’ compensation rates mean a reduction in operating costs for businesses. As this trend continues, it may provide an opportunity for businesses to expand and hire new employees.

Since many states are modifying their workers’ compensation insurance rates, it’s important to conduct a yearly review of your policy.

Frequently Asked Questions about Workers’ Compensation Insurance

We’re often asked questions about workers’ compensation insurance by the small businesses we support. Below, we’ve compiled a list of common questions and answers about workers’ comp.

What is Workers’ Compensation Insurance?

Workers’ compensation provides employees medical and wage benefits if they are injured or become ill within the scope of their employment duties. Workers’ comp offers 5 basic benefits:

  1. Medical Care
  2. Temporary disability benefits
  3. Permanent disability benefits
  4. Supplemental job displacement benefits
  5. Death benefits

Who is Covered by Workers’ Compensation Insurance?

Workers’ comp protects employees of a business. Additionally, businesses are generally covered against lawsuit costs brought by employees injured on the job.

Where Do You Get Workers’ Compensation Insurance?

If allowed by the state you conduct business in, workers’ compensation insurance can be purchased through private insurance companies. In some states, workers’ comp can be purchased through a state fund.

Do All Small Businesses Need Workers’ Compensation Insurance?

Every state except Texas requires small businesses to have workers ‘compensation insurance if they meet the requirement as specified in the state they do business in.

For example, in Florida, a business must carry workers’ compensation insurance if they have more than four full-time or part-time employees. However, certain industries, like construction, must carry workers’ comp regardless of the number of employees.

Do Small Business Owners Need Workers’ Compensation Insurance Coverage?

In general, sole proprietors and partnerships do not require workers’ compensation insurance unless they have employees. Business owners can, if they choose, be covered by workers comp.

How Can a Small Business Be Exempt from Carrying Workers’ Compensation Insurance?

If a business does not exceed the number of employees required by the state to carry workers’ compensation insurance, they can file an exemption with the state. This requires an officer of the business to register the business as exempt.

Is there a Federal Workers’ Compensation Insurance?

The federal government provides its own workers’ compensation program covering federal employees and civilian contractors working for the federal government.

While small businesses are generally exempt from getting federal workers’ compensation insurance, some industries might require insurance.

For example, the Longshore and Harbor Workers’ Compensation Act (USL&H) requires employers of maritime workers to carry workers’ comp and USL&H coverage.

Consider Delegating Your Tasks to Business Solutions Unlimited

Do you have the time or staff necessary to find the right workers’ compensation insurance carrier for your business? If not, a virtual assistant firm like Business Solutions Unlimited can help.

If you’d like to explore the benefits of using a virtual assistant firm, give us a call at (904) 429-4588 to discuss the many ways we can help your business.