From the many stores in University Mall to the bars where Southern Illinois University students hang out, there are a number of businesses located in Carbondale, IL. If you own a business in this city, you are responsible for covering medical treatment and lost wages if your employees are injured on the job. Workers’ compensation insurance is designed to absorb these costs.
An independent insurance agent can help you find the best and most affordable workers’ compensation insurance policy to cover your business. Find a local insurance agent to learn more.
Is Workers’ Compensation Insurance Required in Carbondale?
Carbondale businesses must be in compliance with Illinois state laws. This state mandates that all employers must cover their employees with workers' compensation insurance. This is true even if you only have one employee who works part-time.
There are a few exceptions, however. It is not necessary to purchase coverage for sole proprietors who have no employees, nor is it necessary to cover family members who are corporate officers, or direct family members who live in the same household as the employer.
If you fail to carry workers’ compensation for your employees, you can face a felony conviction that is punishable by up to three years in a jail and fines of up to $25,000.
How Much Does Workers’ Compensation Insurance Cost in Carbondale, IL?
Your business’s cost for workers’ compensation coverage will depend on the types of jobs your workers do and your company’s overall payroll. Every job is assigned a designated classification code, and rates for each class code are regulated by the Illinois Workers’ Compensation Commission. The more likely a worker is to suffer a serious injury, the higher your cost for coverage will be.
Commercial insurance providers are required to use these rate guidelines when assessing costs for coverage. Experience modifiers and claims histories can influence rates and make them higher or lower. The following are average rates paid per every $100,000 in employee payroll for three of the top industries in Carbondale, IL:
- Educational services: $700 a year
- Accommodation & food services: $2,545 a year
- Health care: $1,910 a year
Workers in the accommodation and food services industry have higher injury risks than those who work in educational services. A hotel maid may suffer a back injury while making up beds, or a cook in a restaurant may suffer a significant burn. Injury risks are lower for those in a classroom setting. Talk to your independent insurance agent to learn more about costs in your company’s industry.
Carbondale Workers’ Compensation Pays for the Cost of Medical Treatment
Workers' compensation insurance is designed to ensure that if an employee suffers an occupational illness or is injured on the job, they can receive appropriate medical treatment and follow-up care without experiencing any out-of-pocket costs.
As an employer, you may designate a list of authorized physicians that your workers may go to for their workers’ compensation medical care. Your employees will be required to choose treating physicians from among those listed on your preferred provider list. Exceptions are made during medical emergencies and when warranted due to distance or other extenuating circumstances.
If an employer requires treatment from a specialist, they will need to be referred by a designated physician. If your business does not participate in the preferred provider program, your employees will be able to see a doctor of their choice.
Carbondale Workers’ Compensation Insurance Provides Disability Coverage
If one of your employees needs to be off for more than three consecutive work days to recuperate from a covered injury, workers’ compensation insurance can provide them with disability coverage. Through this coverage, temporarily disabled employees can receive a weekly benefit of two-thirds of their average weekly wage.
Sometimes, treating physicians will approve injured workers to return to work in a light-duty capacity. If so, employees must comply or risk losing their benefits. If a recuperating employee is earning less money than prior to being injured, either because the light-duty job pays less or they are working fewer hours, workers’ compensation insurance can help to bridge the difference in their income.
If a work injury leaves an employee permanently disabled or disfigured, workers’ compensation can provide compensation in an amount that is based on the employee’s previous earnings. The number of weeks the employee may collect this benefit depends on the type of injury sustained and the employee’s overall impairment.
Workers' Compensation Covers Fatal Work Injuries in Carbondale
Unfortunately, workers sometimes suffer fatal injuries on the job. Workers’ compensation insurance can help surviving family members manage the financial difficulties of this loss by providing them with death benefits.
These benefits include up to $8,000 in burial costs and a weekly payment to the surviving spouse and dependents. The payments are in the amount of two-thirds the deceased employee’s previously earned wages and can be distributed for 25 years or up to $500,000, whichever is greater.
How to Appeal Workers’ Compensation Claim Denials
Workers’ compensation claims are sometimes denied. There are a number of reasons this may happen. Insurance companies will not honor claims if they believe that:
- The injured worker is not an official employee of your company.
- The injury did not occur while the worker was on the job.
- The injured employee was intoxicated at the time of the work accident.
- The injury occurred while the employee was committing a crime.
- There is reason to suspect that the injury was intentionally self-inflicted.
If you feel that a workers’ compensation claim was unjustly denied, you can file an appeal requesting that the Illinois Workers’ Compensation Commission begin arbitration hearings.
Find the Best Workers’ Compensation Insurance in Carbondale, IL
If you are looking for suitable workers’ compensation insurance to cover your Carbondale business, an independent agent can help. These agents can match you up with an insurance provider that specializes in covering businesses that operate in your industry. Your agent can also help you compare rates so that you can be certain you are getting your policy at a competitive price.
Are you interested in learning more about the many benefits of working with a local, independent insurance professional? If so, contact an insurance agent in or near Carbondale to get started.
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