Creating A Safer Workplace

Creating A Safer Workplace text overlaying image of a work hat and dafety cone A serious injury at work can have a big effect on you and your business. It’s more common than you might think. So far in 2023, employers have reported 4.26 million non-fatal workplace injuries. Even though that seems like a lot, the number of work injuries has been steadily decreasing. That’s because more and more employers are starting to implement better safety programs. As an employer it’s your responsibility to keep your employees safe. Taking care of safety issues at work might seem expensive at first, but in the long run safe workplaces save more money as well as lower workers’ compensation premiums. 

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Identify Risks

Before you can get rid of risks at work, you have to figure out what they are first. The GOAL method is one of the easiest ways to find risks in the workplace. GOAL stands for Go Out And Look. Essentially, conduct safety checks regularly. Depending on the risks and types of hazards, inspections can be done every day, weekly, monthly, or quarterly. An important part of these checks is keeping records of everything so it’s easy to follow up. These records should include:

 

  • Names of the inspectors
  • Notes on each unsafe condition/practice
  • Suggestions to fix the conditions/practices

All inspections should also be looked over by the safety committee and the top managers. They can keep an eye on the cleanup process and look for any patterns in workers’ compensation claims in the operation.

Encourage Employees To Report Issues

While regular safety checks can improve a lot of hazards, nobody knows the potential issues like the workers. Your employees spend all day on the floor and are more likely to notice potential hazards or unsafe procedures quicker. Workers should know how important it is to fix problems when they are reported, and they should be encouraged to notice and report hazards or close calls right away. This lets you fix anything you may not notice during safety checks, allowing you to fix any issues quickly and efficiently. 

Offices Have Hazards Too

There are some safety risks that are unique to office environments. Most office workers spend their day sitting which can cause back and neck pain. Other risks like vision staring and wrist injuries can come from typing and answering phones over and over again. There are even fall hazards in the office. These may all seem like smaller injuries but over time can cause long term problems and workers’ compensation claims. Taking breaks can help reduce the chance of getting hurt, but figuring out other ways to reduce these risks is a great way to start making the workplace safer.

Workstation Safety

Not every injury is caused by a single accident. Repetitive stress injuries happen when employees do the same motions over and over again for years. These injuries can be avoided by making sure your work area is set up well. Here are some things to think about when setting up a new workstation:

 

  • Make sure work chairs can adjust to the employee’s height. For the best posture their thighs should be parallel to the floor with their feet flat on the floor. This helps employees keep a comfortable posture so they don’t injure their back with slouching.
  • Allow for keyboard height adjustments. While your employees are typing their elbows should be at a 90 degree angle with their wrists straight. This will help prevent wrist injuries such as carpal tunnel
  • Purchase adjustable high quality computer monitors. Their computer monitors should be able to adjust so they can keep the monitor at eye level. This also prevents slouching and eye strain. 

Preventing Falls In The Office

Whether you believe it or not, falls are the most common kind of accident in the workplace. The most reported common reasons for office falls are:

 

  • Tripping over desks, file cabinets, cords, and carpeting
  • Falling out of broken or unstable chairs
  • Falls from standing on chairs
  • Slipping on wet floors
  • Falls due to poor lighting

The easiest ways to avoid these incidents are things you may consider common sense, but making sure steps are taken is important:

 

  • Maintain and fix carpeting and electrical cords
  • Keep offices well lit and change bulbs that start to dim immediately
  • Make sure there are no loose objects lying around
  • Keep walkways clear and ask employees not to leave things like their bags or personal items sticking out

Provide Safety Training

Everyone in the company, and we do mean everyone, from management to the interns, need to be trained in safety protocols. The safety program should also be part of the training for any new employees or when the tasks and possible risks of job changes. Employers who follow safety rules and procedures give their workers safety training, education, and occupational health programs. This way they feel safe when they go to work every day and aren’t at risk for easily avoided mistakes. These safety procedures should be looked at regularly and updated as needed to make sure they are always effective.

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Create Emergency Action Plans

Having a plan for what to do when an employee gets hurt will help make sure the worker gets care quickly and help the workers’ compensation claim process go smoothly. Employees should be taught to stay calm, look at the situation, get in touch with the person in charge, and do what they can to help the person who is hurt or sick.

Think Like An Underwriter

Underwriters work for insurance companies, and their job is to decide whether or not they want to cover a certain risk. When your agent sends them the opportunity to evaluate, they will highlight what the business is doing to make it safer so that it looks like a good risk. When evaluating your own business, it can be helpful to think like an underwriter. This can help you see where you might need to tighten up. Think about how you want other people to see your business and work hard to make that happen.

Provide Proper Gear

What kind of personal protective equipment (PPE) your employees need depends on what you do for a living. For example, antibacterial clothes keep people safe when handling food, masks with double-layer panels are used by people who work in health care, and industrial workwear is strong and resistant to fire. Often, an industry association can help you with questions about your workplace. Making sure your employees have the proper PPE will help keep them safe from potential hazards.

Require Proper Footwear

Any job requires that you wear the right shoes. If your workers are going to be outside, they should wear shoes that are right for the weather. Soles that don’t slip are important almost everywhere. Encourage people to wear shoes with closed toes at work, and provide sturdy shoes in places where people could get hurt on their feet.

Perform Maintenance On Tools and Equipment

Did you know that dull knives hurt more people in restaurants than sharp ones? That’s because a dull knife needs more force to cut through food, which makes it more likely that you’ll cut yourself accidentally or get an injury from doing the same thing over and over again, like tendonitis or carpal tunnel syndrome. Your employees’ tools should be checked regularly to make sure there are no broken or worn parts, no mechanical problems, and that everything is working as it should. Do regular maintenance on your equipment to make it last longer and keep your workers safe.

Factor In Your Employees Needs

Stress, anxiety, and tiredness can make it hard for an employee to pay attention, react quickly, concentrate, and do other things. What’s going on in their personal lives may be “none of your business” as an employer, but how it affects them is very much your business. Even though you can’t control what happens to employees on a personal level, employers can take steps to help keep problems from getting worse. Try to cut down on or limit long, rotating, or overtime shifts. Both employees who take on more work and those who don’t get enough sleep are more likely to get hurt on the job. Plan regular breaks throughout the day. Consider starting a workplace wellness program to give employees a reason to do things that will help them stay healthy and less stressed. 

Working With EZ

Most businesses are required by law to have workers’ compensation insurance. Having this insurance protects both your business and your employees. Your business doesn’t have to spend a lot of money to keep your employees safe, though. There are many ways to encourage safety routines and programs, all of which will help you spend less on workers’ compensation. If the best practices for claims management are put in place and followed, your employees will be able to go back to work as soon as they are medically cleared to do so. Not only will production get back to normal, but workers’ compensation costs will go down as well. 

 

Come to EZ to get free, instant quotes from one of our licensed agents on the best workers’ comp policy. And if you already have workers’ comp benefits but want to look around for a better deal, we can help you do that. Your EZ agent will know about the rules in your area and be able to give you advice as you look for the best policy at the best price. To get started, just type your zip code into the box above or call us at 877-670-3538 to talk to a licensed agent.

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Business Insurance For Your Home-Based Business

business insurance for your home-based business text overlaying image of someone typing on a laptop with houses around it You’ve finally made it, you are your own boss and you run your business out of your home. You’re not alone. There are currently more than 20 million people in the country who work from home. Of those, almost 70% are running their own home-based business. The question is, is your home business properly insured or are you one of the many who are underinsured because you assume your homeowner’s insurance will cover your business? Below we’ll go over what business insurance policies you may need and why. 

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Homeowners Insurance Is Not Enough

While you were starting your company, you know doubt gave a lot of thought to many different aspects. What kind of business, what supplies you need, how shipping works etc. We’ve got one more to add to your long list of worries. If you think that your homeowners policy you have is enough to cover your business against damages and liability, you’re more than likely wrong. The typical homeowner’s insurance policy will only pay out for up to $2,500 in damages inside the home. And only about $100,000 for liability. In some cases it won’t even cover anything for claims related to a business. Additionally, some parts of your homeowner’s insurance can be actually void if you’re operating a business out of your home without other proper coverage.

Policies You Need

Now that you know your home business needs specialized policies, you will need to give some thought to the kind of insurance coverage that your specific business needs. First ask yourself a few questions:

 

  • What is my business property’s value?
  • Do I have employees?
  • Do I use a vehicle for my business?
  • What type of risks are associated with my business?
  • Do customers come into my home?
  • Do I digitally store sensitive information?

 

Once you’ve answered those questions it’s time to think about the policies that will work best for your business. Since Business insurance for a home-based business typically consists of a variety of different policies. You’ll want to carefully consider whether or not you will need more than one of the following types of protection:

Commercial Property Insurance

This policy will provide protection for all of the physical property associated with your company from damages and accidents. Such as fire, theft, or vandalism. If the value of the equipment in your home office is more than what your homeowners insurance policy will cover, or if you keep more than $10,000 worth of inventory in your home, you may need this insurance. Even if you don’t use the expensive equipment on your own property, such as landscaping equipment or handyman tools, if you store the equipment and use it elsewhere you will also need this policy. If you don’t keep any high-value business property at your home, or if your homeowners policy will cover damages, you may not need it. For instance if you are a freelancer and only use your personal laptop for work, then you probably do not need commercial property insurance.

Commercial Liability

Commercial liability covers claims made by third parties (customers, clients, general public). This type of business insurance will pay for any legal defense expenses if your company is sued for causing bodily injury, damage to property, or advertising injury. This includes anything from hiring an attorney to paying court-ordered settlements and any other legal costs that arise. This policy is needed for any home-business that interacts with customers or clients. You’ll want to have at least $500,000 of coverage to protect you against any potential claims that may be made against your business. Specifically if you work off-site with the general public or if you have customers or clients that come to your home for any reason. 

Cyber Liability

Having a home-based business means you probably use your computer and the internet. Whether it be to store client information, payments, and even client’s products (such as graphic design or writing if you’re a freelancer). If you use any kind of technology you need to protect your business against the threats that come with that technology. These threats include hackers and data leaks and can damage your company beyond repair. With cyber liability your business will be covered for any losses that stem from the cyber attack. This includes investigating services, data recovery, and identity recovery. It can even cover damage to your customers or business partners such as legal fees, customer notifications, and settlement costs.

Errors & Omissions

If part of your business provides intangible services, such as financial advice, providing personal training, doing someone’s taxes, or consulting, you will need this policy. This policy will cover your business if a customer sues you for damages that result from your advice or consulting. It also covers your business if you don’t meet a deadline, breach your contract, or are accused of negligence. In most cases a standard liability policy will not pay out for this form of damage as it’s not physical. So, it’s important to have if any part of your business involves giving professional advice in any way.

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Workers’ Compensation

If you have any employees, workers’ compensation should be something you look into. It covers the lost wages, medical costs, and death benefits in the event that your employee is injured or becomes sick or passes away from a work related incident. Depending on the state you live in, you might legally have to have this policy. Some states require any business with at least one employee (besides yourself) to have it while others only require it if you have a certain number of employees. To find out more about the workers’ compensation laws in your state check out our workers’ compensation state by state guides.

Commercial Auto Insurance

Commercial auto insurance is just like personal auto insurance except it’s specifically meant to cover vehicles used for business purposes. It covers damages and medical costs that come from unexpected car accidents as long as the vehicle belongs to a business or was operating for work. This could be a truck and trailer for landscaping, a van you use to haul goods. Or even your personal vehicle if you meet with clients or deliver things to your clients personally. Your personal auto insurance will only provide limited coverage. And may not even cover your vehicle at all if it were being used for business purposes. This could leave you with massive debts that could be avoided with the proper insurance.

Health Insurance

We know, health insurance doesn’t sound like business insurance. However, being self-employed means, you don’t get benefits like a group health insurance plan through an employer. Because YOU’RE your employer. This is commonly overlooked and health insurance for yourself is just as important as any other business insurance. Because protecting yourself protects your business. You’ll want to look into getting yourself an individual policy. Or a family policy if you have dependents or a spouse. This makes sure you stay healthy and never have to dip into the money your business relies on to pay for expensive medical bills. Because you are your business, without you, everything comes to a halt. 

Add-Ons and Packages

That seems like a lot of insurance, especially if you have a generally small business at the moment. There are easier ways to cover your small business if you don’t actually need the full extent of the coverages listed above. There are add-ons and packages specifically meant to give your smaller business property and liability insurance but on a more reasonable scale. These options are:

 

  • Endorsements – As we noted above, your homeowners policy might cover some damages but not all. If your home-based business generates less than $5,000 a year you might be able to add a business endorsement to your standard homeowners policy. This endorsement will increase the amount of your standard policy. As well as ensure none of your homeowners policy is void due to having a home-based business.
  • In-home business policy – These policies are essentially business owner’s policies (BOP), a combination of property and liability coverage, but on a smaller scale. These packages will allow you to bundle smaller business property insurance and liability policies without the cost for coverage that a standard BOP would offer. Typically, the packages will include up to $10,000 in property coverage. And allow you to add anywhere from $300,000 to $1million in liability coverage. This bundle is much more affordable than buying standalone commercial property and commercial liability coverage.

Don’t Stress With EZ

All this information may be overwhelming and a lot to process, especially considering how much you already have going on as a business owner. EZ.Insure is here to assist you, whether you are confused, need help enrolling, or in need of some guidance. We are able to put you in touch with a representative who will answer any questions that you might have. You will have access to one highly trained agent. Who will direct you in the direction of the policy that is best suited for your work from home business.

 

To discuss your commercial insurance needs with one of our representatives over the phone, please dial 877-670-3538. If you are interested in health insurance that we discussed, you can reach us at 877-670-3557. You can also get a free instant quote by entering your zip code in the box below. You will never be harassed by an endless stream of sales calls, and there will never be any fees associated with using any of our services. Let us do the heavy lifting so you can focus on building your business.

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The Most Common Business Insurance Claims

The Most Common Business Insurance Claims text overlaying image of a worker who fell holding their head If everything has been smooth sailing for your business so far, then that’s great! We don’t want to be the bearers of bad news but we have to remind you that things can go wrong. Which is why you have to maintain your commercial insurance policies. It could be a major mistake to believe that you will likely never have to use your insurance policies or that the cost of premiums is not worthwhile. Insurance claims are more common, and costly, than you might expect.

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Burglary And Theft

Almost every commercial business has been the victim of theft by either customers or employees. The majority of all insurance claims filed annually are for burglary and theft. In fact, a recent survey revealed that 54% of small business owners have reported theft. Every business has something that can be stolen, whether it’s money, supplies, data, etc. It is not surprising that this is the most common insurance claim for businesses.

Water And Freezing Damage

The second most frequent insurance claim is for water damage and subsequent freezing due to pipes bursting or flooding from storms. Thankfully the cost of this type of damage can be covered by commercial property insurance. You also need to consider the cost associated with repairing structural damage. Keeping up with snow and ice removal can lower the risk of freezing damage. And maintaining a suitable indoor temperature can prevent pipes from bursting. If you plan to be away from the business for more than 72 hours, such as for an expected snow storm, turning off the water can lower the chances of pipes bursting and causing damage.

Wind and Hail Damage

During severe storms, the wind can become so strong that it actually brings trees and branches down onto buildings. Hail can damage roofs and windows, whereas a tornado can completely demolish your building. Sounds intense, right? Wind and hail damage can cost your business thousands of dollars in repairs. A sufficient commercial insurance policy will help cover the costs of hail and windstorm damage.

Fires

Both small and large businesses can be severely affected by fires. If your business has suffered fire-related losses or damage, you can file a claim for commercial property insurance to cover your financial losses. In some instances, business may be required to replace damaged equipment and reconstruct portions of the structure. If your company’s operations are temporarily halted as a result of fire damage, you can rely on business interruption insurance to compensate for any lost revenue.

Customer Injury and Property Damage

Customer injury and property damage are precisely what they sound like. On your property, accidents are inevitable, however, your general liability insurance policy will cover any customer injuries or property damage. These two insurance claims are commonplace in the majority of industries from construction to retail. If a customer or someone from the general public slips and falls while visiting your business, or if a vehicle crashes into the front of your store, causing severe property damage, your business will need insurance. 10% of businesses file claims for injuries caused by slips and falls. However, if medical costs, legal fees, or repairs start to build up after a customer injury or property damage claim, your general liability insurance can help.

Product Liability

If any products you sell or make are defective, or fail, there is a good chance you will be held liable for any damages, injuries, or illnesses the failure results in. This frequent insurance claim typically happens in the retail, manufacturing, and distribution industries. You will be held responsible for any medical expenses, legal fees, and wage lost. Not to mention the cost of a product recall if your company does not have the appropriate insurance policy. General liability insurance and product liability insurance can protect your business from the risks associated with product liability claims.

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Reputational Harm

If a client or another business decides to sue your company for causing them reputational damage, you may be held responsible for the damage. Reputational damage can also result from an event that causes your company’s reputation to be questioned or damaged. These claims are most common in businesses that store customer data, such as banks, retailers, and media companies. General and professional liability insurance policies can help protect you from reputation damage claims.

Auto Accidents

If your company uses commercial vehicles then you’ll need appropriate coverage from vehicle damage, property damage, and injuries associated with car accidents. A commercial auto insurance policy can protect your company, employees, and your vehicles in the event of an accident.

Struck By Object

Customers, employees, and the general public can be struck by random objects while on your property. Which can cause some serious problems if you don’t have enough business insurance. In one of the more unusual cases of business insurance claims, a British travel insurer offered additional coverage against people being struck by falling coconuts while on vacation. It just goes to show that you can never predict what can happen.

How The Business Insurance Claims Process Works

In the event that your business is affected by one of the above problems, filing a claim for business insurance is pretty straightforward. Your first step should be to contact your insurance company. You have to inform them immediately to get the claim started. You’ll need to give them a list of any items that were damaged or the specifics of a customer’s complaint. Some insurance companies will require you to call them on the phone to file a claim. While others will let you file online. When you file a liability claim, your insurer will conduct an investigation to verify the circumstances.

 

Next, your broker will examine your insurance policy to determine what is and is not covered. Additionally, your insurer may suggest contractors who can assist you with any necessary repairs. Once the investigation and policy review are complete, your claims adjuster will let you know when you can anticipate receiving payment for your commercial insurance claim. 

What Happens If My Insurance Claim Is Denied?

Unfortunately, not all commercial insurance claims procedures are straightforward. Your claim may be rejected for a variety of reasons. For example, if the insurance company suspects fraud, if the claim is not covered by your policy, or if you did not submit the claim quickly enough, it could be denied. There are, however, alternatives to filing a lawsuit in this situation. If your claim is denied, you can write a response letter to your insurance company explaining why you believe the denial was incorrect. To do this, you have to maintain accurate records of all pertinent information before and after the incident. If you require additional assistance, do not hesitate to contact a state insurance regulator for direction.

 

Additionally, it never hurts to follow up with an insurance company regarding a pending claim or to request an explanation as to why the claim was denied. Most of the time, you’ll want to avoid having to go to small claims court over a dispute with an insurance company. Hiring an attorney will only cost you more money. Additionally, there is no assurance that you will win the case. Consider reaching an agreement with the insurance company, even if a state insurance regulator is required. Going to court should almost always be a last resort for small businesses.

Types of Business Insurance You May Need

There’s a long list of insurance policies you should consider for your small business. All of these protect different portions of your business and are equally important.

 

  • General Liability General liability insurance, also known as commercial general liability insurance, protects your business against claims of bodily injury and property damage. This type of policy can be purchased separately or as part of a business owner’s policy.
  • Professional liability Professional liability insurance, also known as errors and omissions insurance, covers a portion of the costs associated with negligence claims and lawsuits. Professional liability will cover you if you or an employee make a costly mistake, such as providing poor advice or improperly handling confidential information.
  • Commercial property – Your company’s physical assets are protected with commercial property insurance. It protects against damage from fire, explosions, burst pipes, storms, theft, and vandalism. Typically, earthquakes and floods are not covered by commercial property insurance unless they are purchased as an add-on for the policy.
  • Cyber liability Cyber liability protects against threats associated with that technology. These threats, which include hacking and data leaks, can be devastating to your business.
  • Commercial auto Any costs associated with injuries, deaths, or property damage caused by your business vehicle are covered by commercial auto. This policy is necessary because a standard auto insurance policy will not cover you if you use your vehicle for business purposes.
  • Business Owners Policies A business owner’s policy (BOP) combines property and liability insurance into one easy policy. NOP insurance protects your business financially against fire, theft, bodily harm, and property damage.

Working With EZ

Regardless of the type of business insurance policy you need, EZ can help. Our agents work with the nation’s leading insurance providers to ensure that your business and its employees have the best coverage available. In fact, we can save you hundreds of dollars annually by finding the best coverage within your budget. Simply enter your zip code into the box below to get started. Or feel free to contact us at 877-670-3538 if you have any questions.

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How to Fight a Workers’ Comp Claim

How to Fight a Workers’ Comp Claim text overlaying image of two people playing tug of war Workers’ compensation insurance is designed to protect you and your employees financially in the event of a workplace accident or unjust. Workers’ compensation insurance isn’t just a good idea, depending on your state it may be a legal requirement. When it comes to workers’ comp claims, the majority of them are approved because workers’ compensation is considered “no-fault”. Meaning that employees do not need to prove that their employer was at fault for their injury.

 

As long as the employee files their claim on time, has witnesses to their accident, and seeks medical treatment for their injury, the employee will receive benefits. There may come a time, however, when one of your employees files a claim that you find questionable. In this case, you do have options, including the option to contest the claim. Below we’ll look at how you can fight a questionable claim. As well as the impact workers’ compensation claims can have on a business. 

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Reasons To Dispute A Workers’ Comp Claim

You can’t fight a workers’ comp claim for no reason, you and your insurance company must have a legal basis for disputing any claims. Here are some of the reasons you could have for disputing a claim:

 

  • Your employee missed the deadline to file a claim
  • The wrong paperwork was used to file a claim
  • The injury didn’t happen at your company
  • Your employee quit before filing a claim
  • The injury happened while the employee was at work but was not working
  • The injury was intentional

Always File The Claim

Even if you suspect the workers’ compensation claim is false. You have to file it when the employee comes to you with it. You can be penalized if you fail to report a work-related injury with a full report of all related details as soon as possible. The insurance claim adjuster’s job is to determine whether or not the claim is valid or not. You are paying premiums to your insurance company so that they can handle these matters. If your report is thorough and you work closely with your adjuster, there is a good chance the adjuster will catch the fraudulent claim and deny it anyway. So, delaying or not filing a report because you think it’s invalid could backfire on you, best to just let the adjuster do their job. 

Work With The Claims Adjuster

Once you’ve filed the workers’ compensation claim with your insurance company, an adjuster will be assigned to the case. They will contact you and the employee personally, as well as review all documents associated with the case including medical records. The adjuster ultimately decides if the claim will be denied, but at this point you will have more information about the claim than the adjuster. If you have reason to believe the employee lied, or was injured outside of work, now is the time to gather all information that supports why you think it’s invalid. Document, date, and save everything that indicates why you think the claim is fraudulent. Most importantly, inform your adjuster immediately that you believe the claim to be questionable. Indicating in your initial report that you believe there are reasons to deny the claim serves 2 purposes.

 

First, it lets the adjuster know they may need to file an extension early, since workers’ compensation claims have to be completed in a certain time frame, and disputing a claim will take more time to investigate. Secondly, marking your claim as questionable from the beginning will actually make your adjuster pay closer attention. They will spend more time looking through the paperwork, medical records, and searching for warning signs that otherwise may have been missed. Finding one of these red flags doesn’t necessarily mean anything, as accidents and coincidences do happen. But if an adjuster notices that more than one exists, they will look into it further to make sure if the claim is or isn’t fraudulent.

Warning Signs

  • A new hire who immediately filed a claim after being hired
  • An employee who has immediately hired an attorney after the injury
  • Claims from an employee who may have been “disgruntled”
  • Employees with poor attendance, poor work records, or financial issues
  • Injuries with no witnesses, or that happened in an area the employee isn’t assigned to normally work
  • Injuries that occur late on a Friday or right when they return to work on Monday

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Learn Your State’s Procedure

While workers’ comp is mandatory in almost every state, each state has its own laws and procedures for dealing with claims. Including disputing them. You can call your insurance provider and ask about what you need to know about local procedures. So you don’t accidentally make a misstep and cause trouble for yourself or your company. 

If you want to learn more about your state’s specific workers compensation laws you can read our state by state guide here.

Dispute The Claim

You have the option to dispute even if the adjuster doesn’t deny the claim after the investigation. In some states, such as Texas, you have to submit a form or attend a hearing to dispute the claim in front of a judge. In other states, such as New York, or Tennessee, you may have to appear before a judicial panel or speak with a state-assigned workers’ compensation arbitrator. However, regardless of the state your company is in, you will most likely have to defend your position orally, in writing, or both. You will also need to provide all of the evidence you gathered when you first filed the claim and informed the adjuster of your concerns. Remember the “document, date, and save all information” part? This is where that step comes in handy.

How Workers’ Comp Claims Affect Businesses

Workers’ compensation claims tend to have a greater impact on smaller businesses. This is because larger companies have deeper pockets and larger payrolls, allowing them to absorb the financial cost with not much issue. Regardless of how big or small your business is though, workers’ comp claims can cause your business issues. Below we’ve detailed how claims can affect you. So, you understand why it’s important to fight fraudulent claims to protect yourself. As well as explain why doing everything you can to avoid workplace accidents is even more important.

Premium Hikes

Your workers’ compensation insurance premiums are determined by your industry, number of employees, payroll, and claims history over the last 3 years. A single claim will not necessarily result in a higher premium. But depending on the nature of the claim and the resulting medical bills and disability benefits even one claim could make a mark on your record. The more often you have workers’ compensation claims the more likely it is that your premiums will increase.

 

Additionally, your insurer also takes your experience modification rate (EMR) into consideration. Your EMR is how insurance companies compare your claims history to other companies in the same industry. The average EMR is 1.0, the more claims you have the higher above average you are. And then the higher your premiums will be because your company will be considered a higher risk to insure. Regular safety training and following industry-specific safety guidelines can help reduce your premiums.

Administrative Costs

Processing a workers’ compensation claim can take a lot of time. Especially if you’ve signaled that you believe it’s fraudulent. The insurance company will want to examine all relevant evidence, including the employee’s medical records. Effectively giving you or your claims specialist more work to do. Your company may also need to spend a lot of time and money to fix or check any equipment that was involved. As well as repair it if needed. Especially if the machinery involved is found to be defective after the accident. There may also be more paperwork and more hours involved in reporting the incident to state and federal regulators. Particularly if an OSHA violation is suspected. New equipment or training that stems from a regulator’s requirement can take a chunk out of your bottom line.

Legal Action Expenses

If you believe it is false, and you decide to take it to court you could also end up paying. While your attorney will advise you on whether or not you should go to court in the first place. Keep in mind if you lose the case, you will have significantly higher legal fees than you would have if you settled the claim. So, if you are planning on disputing your claim make sure your legal team agrees with the decision. And that you have absolute proof that the claim was fraudulent.

Reputation Damage

Impact on your company’s brand is difficult to predict. Your reputation can be affected by the severity of the accident. Whether it is covered by local news outlets, and whether it spreads on social media. A serious accident, repeated incidents, or OSHA fines could make it difficult to be able to hire new employees or get new customers.

Working With EZ

Workers’ compensation isn’t just about protecting your employees, it’s also about protecting your business. Nobody wants to deny a legitimate claim. But if you encounter one of those rare cases it’s fraudulent, you should know you have rights as well. And remember, EZ.Insure is here to help if you have any questions about workers’ compensation insurance. Or any other commercial insurance for that matter. We will connect you with a highly trained licensed agent. Who will listen to all of your concerns and make sure you get the best policy. To get started, enter your zip code in the box below or call 977-670-3538 to speak with an agent today.

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What Is Hazard Insurance?

What is hazard insurance text overlaying image of orange caution tape Keeping your business’s doors open depends on a number of factors. But it’s clear that maintaining your business’s property and equipment is a huge part of that. If these assets are damaged in a fire or natural disaster, it might be difficult for your business to recover. So, you need to protect them. The best way to protect your business and be able to recover some of the costs associated with repairing or replacing your property, is to carry enough hazard insurance. Otherwise known as commercial property insurance.

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What Does Hazard Insurance Cover?

Hazard insurance covers both the building that your business owns or rents, as well as the equipment that it uses. Depending on your policy, hazard insurance will generally cover the cost to repair or replace the following items:

 

  • Personal property
  • Tools and equipment
  • Inventory
  • Furniture
  • Computers
  • Accounts receivable
  • Documents
  • Outdoor landscaping

 

It will cover damages to the above due to:

 

  • Fire and smoke damage
  • Theft and vandalism
  • Some weather-related events such as hail, lightning, snow, sleet, or ice
  • Explosions
  • Aircraft or vehicles
  • Sprinkler leakage
  • Building collapse
  • Water (in certain specific cases)
  • Civil unrest or rioting

 

Damages caused by floods, earthquakes, acts of terrorism, nuclear attacks, or damage resulting from war are typically not covered by hazard insurance policies. You will need a separate insurance policy to protect your business from these occurrences.

Does My Business Need Hazard Insurance?

Even though business owners in many states are not required to have hazard insurance. It is still a good idea to get it because it can assist in covering the costs of damages that you would otherwise have to pay for out of your own pocket. 

 

And while you might not be required by your state to have hazard insurance, in many cases if you want to borrow money for your business from a financial institution, you will most likely be required to have a particular type of hazard insurance policy. For instance, loans from the Small Business Administration (SBA) may require evidence of business hazard coverage.

 

If you’re looking to take out a loan for your business, you can read more about this topic here.

Do I Need Hazard Insurance if I Have a Home Business?

If you run your business out of your home, your homeowner’s insurance policy might not be sufficient to cover the business-related property that you keep in your home. This means you’ll probably want to have a separate policy. 

The Cost

The price of hazard insurance will vary widely depending on a number of factors, including:

 

  • The age of your building/property – If the workspace that you own or rent is older, you’ll typically pay higher premiums because repairs to older properties tend to be more expensive.
  • The value of your building/property – The higher the total value of your assets, the higher the premium for this coverage will be.
  • Whether you choose a cash value or replacement cost policy – With a policy that pays out based on the actual cash value of your property, your payout will be determined by how much your property was originally purchased for before it was damaged. But if you have a policy that pays out based on replacement value, you will be covered for how much it would cost to buy a brand new version of the item that was damaged. Because of the effects of depreciation, cash value insurance is typically more affordable than replacement value insurance.
  • Coverage limits – As is the case with the vast majority of insurance policies, your monthly premiums will go up as you add more coverage.
  • Lender requirements – A lender may require that you have a certain amount of property insurance coverage before they will approve your application for a loan. The more insurance your lender requires, the larger your premium will be.

Hazard Insurance for a SBA Loan

The Small Business Administration (SBA) helps small businesses get the credit they need by putting the government’s name on loans made by commercial lenders. The lender provides the loan, and if the borrower doesn’t pay back the loan, the SBA will cover up to 85% of the loss. 

 

To get a small business loan from the SBA, you need to show that you have hazard insurance. Having this type of policy shows that you own real assets that can be taken if you can’t pay back the loan. For example, if a construction company wants to borrow money to buy a piece of equipment but can’t pay back the loan, the lender can take ownership of the equipment.

Types of Hazard Insurance SBA Might Require

In order to be eligible for a loan from the SBA, you will have to show that your business has adequate insurance coverage. This could mean having general liability coverage as well as commercial property insurance/hazard insurance. Keep in mind that depending on the kind of loan you want to get, the Small Business Administration might require you to have other types of insurance coverage, such as workers’ compensation.

 

Specifically, the Small Business Administration requires the following when it comes to hazard insurance:

 

  • The minimum required coverage amount is 80% of loan principal.
  • Your business’s name must appear on the insurance policy.
  • Your DBA name must be included in the policy if you use one.
  • You must show proof of the required insurance within 12 months of receiving your loan. If your business does not already have it when you apply for your loan.

Is Hazard Insurance Tax Deductible?

The Internal Revenue Service considers business insurance premiums to be an ordinary and necessary business expense. So, yes it can be tax deductible. But there are other factors to think about when determining if your hazard insurance is tax deductible.

 

If you have a home-based business, you may be able to deduct some of your operating costs from your taxable income. Insurance premiums can fall into this category, along with utilities and home office essentials. For instance, you can deduct half of your annual hazard insurance premiums if your home is used for business purposes in excess of 50% of the time.

 

If your company suffers losses in an area where a federal disaster declaration has been issued, you may be eligible for deductions. If you have hazard insurance and your insurer only pays a portion of your claim, for instance. You can deduct the amount of your claim up to $500 per incident.

 

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Other Types of Business Insurance You Need

What, where, and how you do business will determine the specific types of coverage your company needs. The following are some examples of common types of business insurance policies, other than commercial property/hazard insurance:

 

Workers’ Compensation

Workers’ compensation, which is also referred to as “workers’ comp,” is a type of insurance policy that is mandated by law. It provides benefits to employees in the event that they sustain an injury while performing their job. Employees can receive financial compensation, medical benefits, or both from the fund. Which fills the role of an insurance policy for disabled workers. Different states have different regulations regarding workers’ compensation, so check out our state-by-state guides.

General Liability Insurance

Standard liability claims made by third parties (people who are not affiliated with your company) are covered by general liability insurance. This type of commercial insurance policy will pay for your company’s legal defense expenses in the event that your company is sued for causing bodily injury, damage to property, or injury to reputation. This includes everything from hiring an attorney to paying for court-ordered judgements and settlements. As well as any other costs that may arise.

Business Owner’s Policy

General liability and commercial property insurance are the two main components that make up a business owner’s policy, or BOP. Which is essentially a bundle of the two (or more) types of commercial insurance. With a BOP, you will be protected from financial loss and covered for any claims that would be covered by either of those two types of policies. One simple policy can protect your small business from a variety of significant legal risks. 

Commercial Property Insurance

As covered above, this type of policy typically includes coverages for the most common hazards. It safeguards both the structure and the contents of your business’s property.

Commercial Auto Insurance

If your business uses vehicles, you’ll need commercial auto insurance to cover things like liability, accidents, medical bills, personal injury protection, and uninsured motorists. It’s similar to a personal auto insurance policy. But commercial auto insurance has different eligibility requirements, coverage, exclusions, and limits than personal auto insurance.

Working With EZ

Our insurance agents work with the leading insurance companies across the country to ensure that you have access to the best coverage options for your business and its employees. In fact, we can save you hundreds of dollars annually by tailoring our search to find you exactly what you need, at the best price possible. If you have any questions, please do not hesitate to contact us at 877-670-3538.

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Who Is Exempt From Workers’ Compensation?

Who Is Exempt From Workers’ Compensation? text overlaying image of a woman holding out her hand Virtually every employer has to carry workers’ compensation insurance. However, some state laws provide exemptions for particular types of employees and business structures. Only a few worker categories are occasionally exempt. This exemption also applies to certain business owners. However, even when workers’ compensation coverage is not required, it is almost always in the best interest of the employer to provide coverage. If an employee sustains an injury on the job the employer may be held responsible for medical expenses, ongoing therapy, and lost wages. 

 

Additionally, if you as the business owner are injured on the job, a workers; compensation policy can help pay for your medical expenses and compensate you for a portion of your lost wages. Your personal health insurance provider may deny your claim if your injury or illness is work-related, leaving you again responsible for these costs. Below we’ll look at the exemption laws in each state, if you’d like more information on the other workers’ compensation laws in your state, check out our state workers’ compensation guides here.

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Alabama

Any business with 4 employees or less does not have to carry workers’ compensation in Alabama, whether they are full or part time doesn’t matter. Alabama employers do not need to carry workers’ compensation for farm laborers, domestic laborers, or casual laborers including temporary or part-time employees hired for only an hour or a day.

Alaska

Alaska businesses with one or more employees have to have workers’ compensation coverage unless the Alaska Workers’ Compensation Board has approved the business for self-insurance.

Owners and business executives are exempt if they are:

 

  • Sole owners
  • Partners
  • LLC owners with at least 10% ownership interest in the company
  • Executive officer or municipal, religious, or legally registered nonprofit organizations.
  • Executive officers for for-profit corporations with at least 10% ownership.

As for employees who are exempt from coverage:

 

  • Part-time babysitters
  • Non-commercial house cleaning personnel
  • People who are hired to help a farm with harvest
  • Amateur event sports officials
  • Entertainers under contract
  • Commercial fishers
  • Taxi drivers under specific contractual arrangements
  • Anyone who has benefits through the Alaska temporary assistance program.
  • Professional hockey players and coaches, as long as they are covered under a health insurance plan.
  • Some real estate agents
  • Anyone defined as a transportation network company driver.

Arizona 

There are only 4 exemptions from Arizona’s workers’ compensation. Independent contractors and casual laborers do not need to be covered. As well as any employee who voluntarily chooses to not have workers’ compensation coverage. The only owners who do not have to have coverage are sole owners who have no employees. Beyond that, any business owner with one or more employees needs workers’ compensation coverage.

Arkansas

Employers with fewer than three workers do not have to provide coverage unless the workers are:

 

  • Agricultural farm laborers
  • Domestic workers in a private home
  • Gardeners, maintenance workers, remodelers who work in a private home
  • Employees of non profit, religious, charity, or relief organizations
  • Employees of newspapers, magazines, periodical vendose, sellers, or deliverers
  • Real estate agents

California 

All employers have to carry workers’ compensation insurance for themselves and their employees. The only exceptions to this are sole owners who opt out of coverage for themselves, or employers who have approval to self-insure.

Colorado

Colorado employers with at least one employee have to have workers’ compensation coverage. The exemptions to this are:

 

  • Casual maintenance or repair workers who performed less than $2,000 of work in a single year
  • Commission based real estate agents and brokers
  • Ski area volunteers
  • Part time domestic, maintenance, and repair workers for private homes
  • Drivers under a lease agreement with a common or contract carrier
  • Federal and railroad employees covered by workers’ compensation under federal laws
  • Some corporate officers and LLCs

Connecticut

Connecticut is another state that requires all businesses to carry workers’ compensation insurance with very few exceptions. The only employees that don’t need coverage are domestic workers who work less than 26 hours a week. Sole owners, corporate officers, and partners are allowed to opt out of coverage for themselves but they must have coverage for their employees.

Delaware

Farm laborers and household workers in a private home who earn less than $750 every 3 months do not need workers’ compensation insurance. Other than that every other business owner and employee needs to be covered.

Florida

Employers with four or more employees must carry workers’ compensation insurance, unless one of the following applies:

 

  • Farm laborers, unless there are more than 6 full time employees, or 12 seasonal employees.
  • Independent contractors

Georgia

The only exceptions are sole owners and partners in a partnership. Businesses with three or more employees have to carry coverage.

Hawaii

Any employer with one or more full-time, part-time, permanent, or temporary employees has to provide workers’ compensation coverage. Exemptions include:

 

  • Sole owners
  • Partners
  • Corporate officers
  • Domestic workers who earn less than $225 a year
  • Some stockholders who own 25% stocks
  • All stockholders with at least 50% stocks
  • Commission based real estate agents

Idaho

Every employer has to provide coverage. Exemptions to this law include:

 

  • Employees in a domestic household
  • Casual employees
  • Sole owners
  • Partners
  • Corporate officers
  • Family who works for an employer who is a sole proprietor
  • Real estate agents

Illinois

If you have a single employee, even a part-time worker, you have to purchase workers’ compensation insurance. Only sole owners, partners, corporate officers, and real estate agents are excluded.

Indiana

Exemptions for employees and owners for workers’ compensation insurance include:

 

  • Sole owners
  • Partners
  • Corporate officers
  • Independent contractors
  • Real estate agents
  • Casual employees
  • Farm and agricultural employees
  • Employees in a domestic household
  • Railroad employees

Iowa

Every employer has to provide coverage. Exemptions include:

 

  • Sole owners
  • Partners
  • Corporate officers
  • Independent contractors
  • Family employed by a relative for agricultural work
  • Casual employees in a domestic household

It’s important to note that some of these exemptions only apply if the employee earns less than $1,500 a year. 

Kansas

All Kansas companies must have workers’ compensation insurance with only a few exceptions. Some agricultural workers do not need to be covered. Sole owners, partners, corporate officers, and independent contractors with no employees do not need workers’ compensation insurance.

Kentucky

For Kentucky businesses all employers must provide workers’ compensation insurance unless their employees are:

 

  • Agricultural employees, or agricultural owners
  • Less than two domestic employees who work less than 40 hours per week each
  • Anyone working in exchange for aid (such as housing or food) instead of money for charity or religious organizations
  • Certain religious organizations

Louisiana

Exemptions for workers’ compensation insurance in Louisiana are:

 

  • Employees of private residences
  • Employees of private unincorporated farms
  • Musicians and performers
  • Airplane crews who fly for crop dusting or spraying operations
  • Uncompensated officers of board of directors of nonprofit organizations

Maine

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Some domestic employees
  • Some agricultural employees

Maryland

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Sole proprietors
  • Partners
  • Officers of corporations
  • Certain agricultural employees

Massachusetts

All employers must provide coverage. Exemptions include:

 

  • Customers of an LLC
  • Partners of a limited liability partnership
  • Sole proprietors of an unincorporated business (employees must still be covered) have to carry insurance.
  • Domestic service employees working less than 16 hours per week

Michigan

Employers who regularly employ one or more employees for 35 or more hours per week for 13 or more weeks in the 52 weeks prior must provide coverage. Exemptions include:

 

  • Agricultural workers (fewer than three employees working less than 35 hours per week)
  • Domestic workers (fewer than three employees working less than 35 hours per week).

Minnesota

All employers must provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Employers subject to federal liability statutes
  • Agricultural operations with some limitations

Mississippi

Employers with at least five employees have to provide coverage. Exemptions include:

 

  • Sole proprietors
  • Partners
  • Officers of corporations
  • Employers with five or fewer workers
  • Domestic laborers
  • Farm laborers
  • Independent contractors

Missouri

Employers with at least five employees have to provide coverage. Exemptions include:

 

  • Workers in the railroad, postal, and maritime industries covered by federal laws
  • Farm laborers
  • Personal servants in a private residence
  • Occasional workers performed in a private household.
  • Professional real estate agents
  • Direct sellers
  • Volunteers of an organization exempt from federal income tax
  • Non-event-sponsor-employed sports officials or contest workers for interscholastic activity programs or amateur youth programs.

Montana

All employers must provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Domestic or household employees whose typical responsibilities include house cleaning and yard work
  • Casual employment
  • Only those working for assistance or sustenance
  • Officials of amateur athletic competition, such as a timer, referee, umpire, or judge.
  • Real estate, securities, and insurance salespeople paid solely on commission with no minimum earnings guarantee
  • Direct sellers
  • Those who deliver single or multiple newspapers and have acknowledged in writing that they have no insurance coverage.
  • Freelance correspondents who submit articles or photographs for publication are compensated for each submission but have not confirmed coverage in writing.
  • Barbers and cosmetologists who have contracts with cosmetology salons.
  • Petroleum land specialists
  • Licensed jockeys participating in a horse race, from the time the jockey reports to the scale room until the jockey is weighed out after the race.
  • Licensed trainers, assistant trainers, exercise persons, and pony persons on the premises of a licensed horse race meet.
  • Non-Montana residents whose primary duties are not performed outside the state. The employer must adhere to the coverage requirements in the location where the employee resides or works.
  • Officers or managers of a private, non-profit irrigation ditch company, water user cooperative, corporation, or organization.
  • A minister who is ordained, commissioned, or licensed by a church or religious order.
  • Individuals who provide companionship services or respite care to incapacitated individuals. The individual providing services or care must be directly employed by a family or legal guardian.
  • Excluding air search and rescue volunteers, volunteer reserve auxiliary law enforcement, and volunteer firefighters, volunteer workers are defined as:
  • Professional athletes who compete in contact sports for a team or club
  • Personnel of freight brokers and forwarders
  • A musician whose performance is governed by a written contract
  • a few agricultural employees

Nebraska

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Federal workers, railroad workers, independent contractors, and the majority of volunteers are exempt
  • Domestic servants
  • Agricultural laborers
  • Sole proprietors, partners, and officers of corporations

Nevada

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Employment associated with entities engaged in interstate commerce that are not subject to Nevada’s legislative authority
  • Employment covered by private disability and death benefit plans comprising compensation payments of equal to or greater amounts than those provided in NRS 616 and in effect for at least one year prior to July 1, 1947.
  • Temporary employees insured in another state who are brought into Nevada if extraterritorial coverage provisions are in effect with the other state.
  • Casual employment in the construction industry (employment lasting less than 20 days with a total labor cost of less than $500), if the employment is not in the course of the employer’s trade, business, profession, or occupation.

New Hampshire

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Sole owners
  • Limited liability company (LLC) with three or fewer executive officers and no other employees.

New Jersey

Employers with one or more employees have to provide coverage, with the exception of those covered by federal programs.

New Mexico

Employers with at least three employees have to provide coverage. Exemptions include Sole proprietors. However, sole proprietors are counted as employees when determining whether a business employs three or more individuals.

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New York

All employers must provide coverage. Exemptions include:

 

  • Volunteers who provide their services to nonprofit organizations without compensation
  • Ministers, priests, and rabbis duly ordained, commissioned, or licensed; sextons; Christian Science readers; and sects of religious orders
  • Customers of supervised amateur athletic activities operated on a nonprofit basis, provided that such s are not otherwise engaged or employed by any person, firm, or corporation participating in such athletic activity Educators in a nonprofit religious, charitable, or educational institution
  • Individuals employed in a nonmanual capacity by or for a religious, charitable, or educational organization.
  • Persons receiving charitable aid from a religious or charitable institution who perform work in exchange for such aid, but who are not under an express contract of hire, are considered unpaid volunteers.
  • People who are covered for specific types of employment under another workers’ compensation system, such as those employed in certain maritime occupations, interstate railroad employees, federal government employees, and others who are covered by federal workers’ compensation laws.
  • The spouse and minor children of a farmer-employer, provided they are not under an express contract of employment.
  • Certain foreign government and Native American Nation employees
  • Provisions of the New York State General Municipal Law that protect New York City police officers, firefighters, and sanitation workers
  • People, including minors, performing yard work or casual chores in and around a single-family, owner-occupied residence or a noncommercial organization’s property.
  • Certain real estate salespeople who sign a contract with a broker stating that they are independent contractors are considered independent contractors.
  • Certain media sales representatives who sign a contract stating they are independent contractors are considered independent contractors.
  • Certain insurance agents or brokers who sign a contract stating they are independent contractors are considered independent contractors.
  • Sole proprietors, partners, and certain corporate officers with no additional personnel providing essential business services.

North Carolina

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Some railroad personnel
  • Casual employees
  • Domestic servants employed directly by the household
  • When less than ten full-time, non-seasonal farm laborers are regularly employed by the same employer, they are considered farm laborers.
  • employees of the federal government in North Carolina
  • Those who sell agricultural products for their producers on commission or for other compensation, provided the product is prepared for sale by the producer.

North Dakota

There are no exceptions in North Dakota. All businesses must have workers’ compensation insurance.

Ohio

All employers must provide coverage. Exemptions include:

 

  • Partnership Limited liability company that operates as a sole proprietor
  • LLC serving as a partnership
  • Directors of family farm corporations
  • Individuals with no employees incorporated as a corporation
  • A religious organization’s ordained or associate ministers

Oklahoma

All employers must provide coverage. Exemptions include:

 

  • Independent contractors
  • Some agricultural employees
  • Certain providers of services administered by the Oklahoma Department of Human Services who are licensed and compensated on a commission-only basis
  • Any employee of an employer with five or fewer employees who are all related to the employer by blood or marriage. Any employee of a tax-exempt youth sports league.
  • Sole proprietors, partners, and officers of corporations
  • Any individual who performs volunteer work and receives no remuneration other than meals, drug or alcohol rehabilitation therapy, transportation, lodging, or reimbursement for incidental expenses is considered a volunteer.
  • Owner-operators of tractor-trailer trucks
  • Drive-away sole proprietors

Oregon

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Family-owned businesses with no employees in which multiple families are employed.
  • leased employees
  • Temporary employees

Pennsylvania

Employers with at least one employee have to provide coverage. Exemptions include:

 

  • Federal workers
  • Longshoremen
  • Railroad employees
  • Casual employees
  • Some agricultural laborers
  • The Workers’ Compensation Act does not apply to domestic workers Sole proprietors, partners, and corporate officers
  • Executive officers for whom the Department of Labor and Industry has granted a religious exemption
  • Real estate salespeople with a valid license or associate real estate brokers

Rhode Island

Employers with at least one employee has to provide coverage. Exemptions include:

 

  • Sole proprietors
  • Partners
  • Officers of corporations
  • Independent contractors

South Carolina

Employers with four or more workers have to provide coverage. Not a single exception exists.

South Dakota

Unlike most other states, South Dakota employers do not legally have to carry workers’ compensation insurance. To avoid civil lawsuits, however, the state encourages employers to have workers’ compensation coverage. 

Tennessee

Employers with at least five employees have to provide coverage. Exemptions include:

 

  • Farm laborers
  • Domestic laborers
  • Sole proprietors, partners, and officers of corporations

Texas

Except for private employers under contract with the government, Texas employers are not required to carry workers’ compensation insurance.

Utah

Employers with at least one employee are required to provide coverage. Exemptions include:

 

  • Sole proprietors, partners, and officers of corporations
  • Independent contractors

Vermont

All employers must provide coverage. Exemptions include:

 

  • Casual employees
  • Participants in amateur sports
  • Some agriculture employees
  • Volunteers

Virginia 

Employers with at least three employees are required to provide coverage. Exemptions include sole owners. However, sole owners are counted as employees when determining whether a business employs three or more individuals.

Washington

All employers must provide coverage. Exemptions include:

 

  • Certain executives of public corporations
  • a number of independent contractors
  • Volunteers

West Virginia

Employers with at least five employees have to provide coverage. Exemptions include:

 

  • Domestic staff
  • Casual workers
  • Employees of religious institutions Athletes in professional sports
  • Employers participating in federal programs

Wisconsin

Employers with at least three employees have to provide coverage. Employers with fewer than three employees who pay wages of at least $500 per calendar quarter must also carry workers’ compensation insurance. Exemptions include some farm laborers.

Wyoming

Employers with three or more workers must provide coverage. Employers with fewer than three workers who pay at least $500 in wages per calendar quarter have to carry workers’ compensation insurance. Exemptions include some farm workers.

Workers’ Compensation Made EZ

Most states require businesses to carry workers’ compensation insurance, which will not only protect your business but also your employees. Keeping your employees safe does not have to be an expensive endeavor for your company. There are numerous ways to promote safety routines and programs, all of which will help you reduce your workers’ compensation costs. If you use the best practices for claims management and follow them in a timely manner, your employees will be able to return to work as soon as they receive medical clearance to do so. Not only will production return to normal, but workers’ compensation costs will get cheaper as well. 

 

Come to EZ for free, instant quotes from one of our agents if you are looking for the best workers’ compensation policy. And if you already have workers’ compensation benefits but are looking for a better deal, we can assist you. Your EZ agent will be familiar with the local laws and able to guide you as you shop around for the best policy at the most affordable price. Enter your zip code in the box above or call us at 877-670-3538 to speak with one of our agents.

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