Many people have heard of workers’ compensation insurance, but not many know what it is or how to get it for their employees. The problem with this is that not knowing the right way to go about getting coverage can cost you thousands of dollars in overpayments in the long run.
What is Workers’ Comp?
It is an insurance policy that pays for your employees that get hurt on the job.
Workers’ compensation insurance covers 100% of their medical bills, with no deductible, including the ambulance ride, as well as any rehab that’s needed after the injury occurs.
It also pays the employee for missing wages from not working and usually covers 80% of their wage.
Do I need Workers’ Comp?
This varies from state to state, but in Michigan, if you have more than three employees you are required to have workers’ compensation insurance.
If for whatever reason, you don’t have workers’ comp and one of your employees gets hurt at work, all of the medical bills will be your responsibility, and 9 times out of 10 will put your company out of business.
How do I get Workers’ Compensation Insurance?
Talk to your insurance agent, most companies get workers comp from the same place that they get their property and casualty insurance
Does STPS offer Workers’ Compensation Insurance?
We are not licensed to sell insurance, however, we work with a variety of insurance providers. One of which offers a weekly ‘pay as you go’ plan, which is beneficial for a lot of companies because the employer doesn’t have to put a 25% deposit down upfront.
Contact us for a direct contact name for E-COMP NOW.
How much does Workers’ Comp cost?
Varies by claims history, by state, generally, workers’ compensation insurance costs 8% of the wage for a truck driver, with office employees being significantly less because the risk is less.
If you pay per diem, it won’t be subject to workers comp, so instead of paying 8% of the wage for the insurance, it would be reduced to about 5% of the wage.
Who do you recommend for Workers’ Compensation Insurance?
We recommend your truck insurance agent. Most insurance providers offer workers comp coverage, so it would be best to go through a provider that you have experience working with.
If you have any questions about which workers’ compensation insurance plan will be best for your specific trucking company, reach out to us using the form below and we will connect you to a provider that can meet your individual needs.
