Worker Compensation Insurance also is known as workmen compensation is an insurance that provides wage replacement and medical benefits to employees injured in the company premises in the absence of professional responsibilities. The employees when exposed to some risk during employment give mandatory relinquishment in exchange.
Worker’s compensation includes payments to employees to cover their wages while they are not fit for work, medical expenses and rehabilitation.
Who pays for Worker’s Compensation?
In particular, employers pay for worker’s compensation insurance typically in one of the three ways:
- State-run insurance: These are generally chosen by small employers or employers in an industry with few workplace injuries. In this state government is responsible for administering the program.
- Insurance companies: These are private insurance companies that provide worker’s compensation insurance, most states allow private insurance companies. However, not all the state permits, for example, Washington is one of the few states that does not allow private worker’s compensation insurance.
- Self Insurance: These are generally chosen by large companies and it has to prove, it has sufficient assets to cover the expected worker’s compensation liabilities. Also sometimes they utilize third-party administration. A company that administers worker’s compensation claims for self-insured employees.
Worker’s Compensation insurance covers :
- Medical expenses
- Missed wages during recovery
- Compensation for fatal injury
- Lawsuits related to work injuries.
Worker’s Compensation insurance does not cover :
- Injuries caused by intoxication or drugs.
- Injuries from company policy violations.
- Independent contractor injuries.
- Injuries claimed after firing or lay off.
- Wages for replacement workers.
- OSHA fines.
Workers’ Compensation insurance varies from state to state, and it’s almost compulsory for all companies or business owners otherwise can face penalties ranging from fines to jail fine, depending on the law.
The job description of an Insurance broker
Undoubtedly each one of you requires life insurance or may some other types of insurance. At this point, the insurance broker plays a major role in finding a suitable policy according to your needs. Furthermore, they are the lines or bridge between clients and the insurance companies, finding the client the best policy in a trusted insurance company.
Responsibilities vary according to the companies, like retail insurance providing general coverage in areas such as property, travel, motor, and pet insurance. Commercial insurance dealing with more complex and high-value areas such as marine, aviation and, oil and gases. These includes:
- Maintains business relationships with clients.
- Scheduling meetings between clients and companies.
- Assessing clients current as well as future insurance needs.
- Negotiates policy terms and costs for clients with insurance providers.
- Collects insurance premiums from clients.
- Keeping records in details.
- Advising clients for making claims according to their policies.
- Understanding general administrative duties.
Key skills insurance broker should have :
- Confident negotiating skills.
- Reliability and honesty with their clients.
- Time management.
- Good decision making and analyzing sills.
- Accurate to detail.
- Excellent verbal communication skills.
Qualification required :
In general, there are many routes to become an insurance broker, can be a university graduate or a school leaver. A graduate in any subject is acceptable and school leavers are recruited as a trainee in insurance technician or trainee broker roles. So they can get experience in dealing with insurance policies and clients to become professional.