Workers' compensation insurance is mandatory for most employers, so don't try anything unethical to get around this duty. Some employers may try to classify employees as contractors to avoid such expenses as workers' compensation coverage, while small businesses may simply not research their obligations to provide coverage. 

While insurance is an expense paid by employers, keep in mind that it protects not only your workers but also the company. How? First, it helps get employees healthy and back to work as soon as possible. You can't run your business without your workers, so you want them to get better as soon as possible. Second, workers' comp helps protect the company from lawsuits and unlimited financial liability. 

Future premiums are calculated based on factors such as the size of your payroll, the makeup of your workforce, and prior claims. But even though usage may affect your rates, don't discourage employees from using the coverage when needed. Remember, the coverage provides some protection for the business, as it helps reduce liability.

Going outside the system when an accident occurs might be attractive as a less expensive option. But it opens up your organization for higher risks - both legal and financial - if things don't work out as easily as you would like. 

The employer is not left completely without resources when it comes to workers' comp claims. Employers generally have the right to defend themselves against a workers' comp claim if they feel there is a legitimate reason to do so. And not every injury is actually covered. 

Some common injuries that may not be covered include situations where an employee intentionally harmed themselves or committed a crime. If they violated a company policy or engaged in activity outside their job function, such as improperly driving a forklift, their injuries may not be covered. On the other hand, if you let an employee use a company vehicle after hours, you may be liable for an accident. 

The employer's best defense against unnecessary expenses is to understand what is and isn't covered as well as what employer responses are and aren't allowed within your state's rules. Talk to your agent about these guidelines when you purchase coverage. 

An employee who submits a claim with their company's insurance might cost your business some money (usually in higher premiums), but the employer should never retaliate against them. If you act in any way that could be construed as punitive - such as by allowing a hostile work environment - you may end up in a costly legal battle for violating the worker's right to this coverage. 

Employers are generally barred from considering past workers' compensation claims when they make decisions about such things as hiring, promotions, raises, or termination. When handling a current claim, work with the insurance company and doctors' recommendations to provide alternative work arrangements, time for ongoing medical care, and normal company benefits. 

As with any business purchase, the more you know, the more you can be prepared. Want to learn more about your rights and obligations for workers' compensation coverage? Start with a visit to the insurance experts at S.N. Anthony Insurance Inc. For more than 100 years, we have served the businesses of Tennessee and its surrounding states with all their insurance needs. Call today to make an appointment.