Workers' Compensation

How Work Comp Insurance Works

Workers’ compensation insurance protects businesses and employees from severe financial loss should an injury or illness occur. Not only is worker’s comp a requirement in most states, but it is invaluable to business owners.

Are You Required to Have Workers' Compensation Insurance?

The short answer is, “yes.” Almost every state within the U.S. requires businesses to carry workers’ compensation coverage for their employees, with very few exceptions.

  • In Utah, all employers must carry coverage, except for some agricultural employers, real estate brokers, partners, and sole proprietors.
  • In Arizona, workers’ compensation insurance is mandatory for businesses that regularly hire employees, apart from independent contractors, or employees who are casual workers.

Workers' Comp Protects Your Business From the Unknown

Approximately 5,147 fatal work injuries occurred in 2017. Each year, millions of employees suffer an injury or illness while on the job. Within the United States, construction, transportation, agriculture, and professional business see the highest number of fatal injuries each year.

Even if your business is not in one of these industries, workplace injury or illness is still a possibility. Around 510 injuries occur around the U.S. every hour, resulting in over 100 million lost production days each year. Workers’ compensation greatly benefits your bottom line, protecting your business from the unknown.

The Workers' Compensation Claim Process

After an injury or illness happens, it is important to understand what happens next to properly receive protection from your policy.

  1. The employee must seek medical attention. Your employee should see a doctor or visit an emergency room as soon as the injury or illness occurs.
  2. You provide work comp information. As the employer, you are responsible to provide the employee with the information required to file their claim, including contact information, policy information, and any required forms.
  3. The employee files the claim. The employee is responsible for filing the appropriate claim to the insurance company. Your insurance company will decide whether to accept the claim once received. If the employee receives a denial, there is an option to appeal.
  4. The employee receives benefits. Once approved, the employee will receive their workers’ compensation benefits.

Need a Workers' Comp Carrier? Call American Liberty.

American Liberty is a workers’ compensation carrier serving Utah and Arizona. To best protect your business and your employees, reach out to us today by calling 801-226-8008 or send us a message.