As the capital of Alabama, Montgomery is home to a variety of business varying in size and scope. From law firms to manufacturing plants, these businesses help the economy. This is why it's important to make sure that you are covered in case of an accident. If an accident happens, workers’ compensation insurance will be there to protect you and your employees.
A local independent insurance agent will work with you in Montgomery to get an affordable workers’ compensation insurance policy to protect your business. Find an independent agent near you to get started.
Is Workers' Compensation Insurance Required in Montgomery, Alabama?
Employers in Montgomery are required by law to provide workers’ compensation insurance if they employ at least five people. This applies to all full-time and part-time employees.
However, there are a few exceptions. Businesses are not required to provide workers’ compensation insurance to casual workers, farm laborers, or domestic workers, or in communities with a population less than 2,000 people. It then becomes up to the employer to voluntarily cover them.
If you violate this law, you may be ordered to close your business until you comply, fined $1,000 per employee for each day that you failed to provide the required business insurance, and even be required to serve jail time. If an employee has a work-related injury and they are not covered, they could file a lawsuit against you for their medical expenses.
How Much Does Workers' Compensation Cost in Montgomery, Alabama?
The cost of your workers’ compensation insurance in Montgomery will depend on the types of positions your employees hold. The National Council for Compensation Insurance (NCCI) assigns classification codes for each occupation. If the employee is more likely to be injured, the rate will be higher.
Insurance providers are required to file their rates using the states’ assigned costs as guidelines. Claims history, worker safety records and incentives are factors that can result in discounts of up to 25% for workers’ compensation insurance in Montgomery.
Montgomery, AL Workers' Compensation Covers the Cost of Medical Treatment
In Montgomery, if an employee has a job-related injury or illness, workers’ compensation insurance can help provide coverage so they won’t be stuck with a huge financial burden. It also provides benefits for occupation illnesses. Additional benefits for Montgomery employees are:
- Vocational rehabilitation: If the employee is unable to return to their normal job, they can receive assistance in finding new employment.
- Medical benefits: As long as the treatment is certified, they will be covered for all medical treatment due to the work-related injury.
- Mileage reimbursement: This can cover all travel to and from medical appointments.
- Missed work: Employees will be financially covered for the time missed at work due to the injury
Workers’ Compensation Insurance Provides Disability Coverage for Montgomery, AL Employees
If an employee in Montgomery misses more than 3 consecutive days due to a job-related injury, workers’ compensation insurance will provide disability benefits to help with the financial burden.
If they are eligible for temporary total disability relief, they will be provided with two-thirds of their average weekly wage in Montgomery. Until they have reached complete recovery and can return to work, they will receive these benefits. If they miss more than 21 days consecutively due to the job-related injury, they will be paid the first 3 days of disability.
Some employees may still be able to work but are earning less due to a job-related injury. In this case, they would receive benefits for temporary partial disability. They are compensated with two-thirds of the difference in their earnings.
There is a cap on the amount that can be collected weekly. As of 2019, the maximum weekly benefit is $892 per week. This amount is updated annually by the Alabama Workers’ Compensation Commission.
Compensation for Workplace Fatalities in Montgomery, AL
Job-related accidents may result in a fatal injury. In this unfortunate event, workers’ compensation insurance can help surviving dependents and family members with the financial hardships.
The employee’s family will receive death benefits that include up to two-thirds of the average weekly wage. The family members will also receive up to $6,500 to help with the funeral costs and burial expenses.
What Can Cause a Workers’ Compensation Claim to Be Denied?
Workers’ compensation claims are sometimes denied. This may occur if the employee didn't notify their supervisor of the incident in time, if the injuries were self-inflicted or if there was not enough evidence that the injury happened at work.
However, if a worker feels that their workers’ compensation claim was unjustly denied or they are unhappy with the settlement, they can contact the Alabama Bureau of Workers’ compensation to request a review of the settlement.
How Can You Find the Best Workers' Compensation Insurance Policy in Montgomery?
A local independent insurance agent can help you find the right workers’ compensation insurance policy for your Montgomery employees. Independent agents work with multiple insurance companies to compare prices and find a provider that specializes in covering businesses like yours.
Use independent agents to find the best insurance plan in Montgomery. You specify what you’re looking for, and the network will recommend the best local agents for you. Any information you provide will be sent only to the agents you pick.
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