Workers Compensation Insurance in Vermont
Protecting your employees with workers compensation insurance is your responsibility and your legal duty in Vermont. This important coverage helps pay the expenses associated with workplace injuries.
The state of Vermont, like many other states, requires that businesses purchase workers compensation insurance for their employees. If you have at least one part-time or full-time employee, your business needs workers comp insurance. As the business owner, you can choose to include or exclude yourself in a policy, but your employees must all be covered at no expense to them.
When working with independent contractors and sub-contractors, it’s important to make sure they carry their own insurance. If they do not, you may be required to pay for their workers compensation. The agents at T.S. Peck Insurance can help you determine your legal insurance requirements.
Workers Compensation Benefits
In Vermont, workers compensation insurance provides important benefits to your employees and your companies. If an employee is injured on the job or becomes ill due to working conditions, they can file a workers compensation claim. This insurance should help to pay medical costs and salary replacement during their recovery. This allows them the time to heal before returning to work. They may also return to work part-time or on light-duty and receive partial benefits during this time.
Your Vermont business also benefits from workers comp. When an employee is injured and cannot work, you lose their valuable contributions to your business. Without insurance, you may have to choose between paying their salary at a loss to you, or terminating employment and damaging company morale. Because workers comp benefits pay the employee’s wages, you are able to hire a temporary replacement without affecting your bottom line.
Workers compensation is a no-fault solution to the problem of workplace injury. Receiving workers compensation benefits makes an employee ineligible to file a lawsuit against your company for their injuries. If a lawsuit were to be filed, your workers comp insurance would help to cover your legal fees.
Premium Costs and the Insurance Audit
Workers compensation is one of the biggest insurance expenses that most businesses face. At T.S. Peck, we aim to make the insurance process easy to understand and affordable. The process of determining your premium costs for workers compensation involves gathering your payroll data and breaking down the job responsibilities of each employee. Each employee will be assigned a risk rating, and your premiums will be based on this risk assessment as well as their salary. Higher risk employees, such as construction laborers, will cost more than low-risk secretarial staff. Our agents can guide you through this process to help you understand your premiums.
Each year, an audit will be conducted to review the previous year and adjust the premiums for the coming term. This process allows your costs to be accurately matched to the insurance coverage you need. This ensures that you are not over- or under-paying for your insurance.
Your employees are valuable to your business. Protect them with workers compensation insurance as required by the state of Vermont. Please contact the insurance experts at T.S. Peck with any workers compensation questions.