Workers Compensation Insurance in Vermont

Workers Compensation Insurance for Vermont Business

Your employees are the backbone of your company. Without their talents and efforts, you wouldn’t be able to run your business. If an employee is injured on the job, it hurts both the company and the employee. Fortunately, workers compensation insurance can help Vermont businesses and employees during these unfortunate times.

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When an employee is injured on the job and unable to work, it causes a ripple effect through the company. The employee must be able to afford their health care and living expenses. However, if you keep paying their salary, it can become difficult to afford & hire a temporary replacement to fill their position until they return. If you do not pay the injured employee, they may not be able to afford their care, and may sue you for damages which you can ill-afford. Workers compensation insurance helps to address all these issues, protecting your company and your employees when workplace injuries occur.

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What are the Benefits of Workers Comp Coverage?

Workers compensation coverage takes effect when an employee is injured while on the job or becomes ill due to the working conditions. It can help provide protection both for the employee and your company so that your business does not suffer due to a workplace injury. Typically, when a workers comp claim is filed and approved:
  1. The employee receives reimbursement for medical treatments related to the injury.

  2. If the employee is unable to work or resume their full duties, they receive a percentage of their salary until they can return to work.

  3. The employee can receive occupational therapy to help facilitate their return to the job.

  4. Your company is no longer obligated to pay the employee a full salary, freeing up funds to hire temporary help.

  5. Your company is legally free of responsibility for the accident and no lawsuit can be filed if the employee accepts workers comp.

What are the Vermont Legal Requirements?

Workers compensation is not only an important protection, but it is required by the state of Vermont for all businesses that have employees. As soon as you hire one employee who does work for you within the state, you are required to purchase workers comp. There are few exceptions to this law, including when:

  1. You have been approved by the Department of Labor to self-insure.
  2. You are the sole proprietor or partner and have no employees.
  3. Volunteers do not need to be covered.

Your insurance agent can help determine if any of these exceptions apply to your business. Failure to comply with state regulations will result in fines and penalties.

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What are Premiums and Appraisals for Workers Comp?

Workers comp premiums are determined based on a variety of factors. For each employee, you will need to provide a job description and their salary. They will each be categorized based on the risk associated with their job function; a construction worker will typically cost more to ensure than secretarial staff due to the riskier nature of the job. From these factors, your total premium will be determined.

Each year, an insurance appraisal should be conducted. At this time, your actual payroll and employee information from the previous year will be examined to determine if your premiums were correct. Discrepancies will be billed or credited as necessary and the premiums for the upcoming term determined. To reduce discrepancies, you should inform your insurance agent whenever major changes are made to your staffing and payroll.

Vermont businesses that have employees must also have workers compensation insurance. Vermont contractors insurance policies, landscaper insurance policies and many others all fall under this umbrella. This important policy protects both your employees and your company in case of workplace injuries.

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