What is wcb coverage

Under some laws, independent contractors are not considered to be your employees. However, for the purpose of workers comp insurance, most states will treat an uninsured contractor or subcontractor or employees of an uninsured subcontractor as your employee—meaning you may be liable if he or she is injured while working for you. To avoid any unintended liability, larger companies often require any contractors or subcontractors doing work for them to provide proof they have workers comp insurance.

Regardless of whether insurance is required and regardless of how few employees you have, if an employee protected by the state statute is injured or killed in the course of working for you, you may be legally liable. One claim for a serious employee injury could bankrupt many small businesses. Insurance, through the payment of premiums for workers comp coverage, provides a predictable cost for handling this risk. It must be purchased as a separate insurance policy. Each state has its own rules about where employers may buy workers comp insurance.

In a few states all employers must buy their workers comp insurance from a state monopoly insurer, known as a state fund.

In a number of other states, insurance may be purchased from the state fund or from private insurers. In the states that have them, state funds may serve as an insurer of last resort for businesses that cannot find coverage from a private insurer. Premiums for the most dangerous enterprises, such as trash hauling or logging, may be much higher than premiums for an accounting firm. Location has also become a factor in workers comp premiums.

Since the terrorist attacks of September 11, , workers compensation insurers have been taking a closer look at their exposures to catastrophes, both natural and man-made. For businesses located in an area at high risk of catastrophe, premiums may be higher, regardless of the nature of the business itself.

Employers with an annual premium above a certain amount are usually eligible for experience rating, which adjusts the premium up or down depending on the claims history of the company relative to other companies in that industry category. Businesses with higher than average claims will pay a higher premium and those with lower claims will generally pay less.

Experience rating is more sensitive to the number of claims loss frequency than the dollar value of claims loss severity. A greater number of accidents indicates that overall in working conditions are not as safe as an environment where fewer accidents occur, even if in a given year the few accidents that occurred were more costly.

Your costs include insurance premiums, payments made under deductibles and the administrative costs of handling claims and making reports to the state and your insurer. Under "Part One", the insurer contracts to pay whatever the state-required amounts of compensation may be.

Unlike other types of insurance, workers comp coverage has no ceiling or limit on the policy amount. It has a monetary limit. Employers' liability also insures an employer in some other situations. For example, an employee injured while working with a machine might file suit against the manufacturer of the machine. The manufacturer might then sue the employer claiming that the cause of the injury was modifications the employer made to the machine or improper use.

Another situation where this liability coverage applies is when the spouse of an injured worker sues the employer for loss of consortium. In most states you are required to keep records of accidents. You must report work-related accidents to the state workers compensation board and to your insurer within a specified number of days.

Studies suggest that the faster the insurer receives notice of an injury and can initiate medical treatment and benefits, the faster the injured worker recuperates and returns to work.

To help get medical treatment to the injured worker faster, some insurers help employers file promptly a "first notice of injury" with the state agency responsible for overseeing the workers compensation system, a step which can trigger the claim process. A study of injured workers in Wisconsin by the Workers Compensation Research Institute found that the duration of time off from work and periods of subsequent unemployment are lower for injured workers who return to their pre-injury employer than for those who change employers.

You should explain to workers how the workers compensation system works and that they are required to report an accident immediately and get medical attention promptly.

Your expectations relative to work-related injuries or accidents should be part of the employee handbook if there is one , conveyed to new employees as part of orientation, posted on bulletin boards and communicated periodically in safety reviews.

Communicate regularly with employees who are off work due to a work-related injury. Workers who know they are thought about, missed and still part of the workplace team are generally more eager to return.

Another aspect of the return-to-work process is successful reintegration into the workplace. Workers comp insurers help you assess the injured worker's needs and capabilities and encourage you to let workers know, in advance of any injury, that you will try to modify work activities to accommodate those who are disabled.

Your workers comp policy covers claims made only in the states named in the policy "Declarations. The solution is in the "Other States" section of the policy, which allows you to list states where employees might work from time to time so there will be coverage for claims filed in those states.

The "Other States" portion of the policy cannot be used to cover claims in states where coverage must be obtained from the state workers compensation fund. Get coverage Types of coverage Worker coverage Personal coverage Coverage for contractors and subcontractors Coverage in special circumstances Working outside Alberta Farming coverage Premium relief for employers Clearance letters When is a clearance needed?

Get a clearance letter How premiums are set Industry classifications Rate setting. Find out more. Resources We have the information and tools to support you when an injury happens at work.

For workers Forms and guides Fact sheets Union representative seminars Online services Translation services. For employers new. For workers. About WCB Workplace injury and illness can impact people's lives—we're here to help. Why people stay at WCB Career opportunities. Policy and legislation Policies and Information Manual What's new in policy? We are safe, healthy and stronger together was a tough year for all Albertans. Read about it in our annual report. Millard Treatment Centre We are a leading provider of rehabilitation and disability management services in Alberta.

Programs and services Assessment services Treatment programs Employment services Prevention services. Workshops Physical demands analysis workshop Modified duties workshop Office ergonomics workshop Industrial ergonomics workshop Prolonged exposure therapy workshop Workshop registration form.

Help at every step in your return-to-work journey If you're unable to return to your pre-accident job, we can help you prepare for a new position. Need help? Alberta: Rest of Canada: Online inquiries. Workers' compensation insurance is no-fault insurance providing: Medical and return-to-work support services.

Your injured workers will have access to the appropriate medical services to help them safely return to work. This includes chiropractic treatments, physiotherapy, counselling, etc. Protection against loss of income. Compensation for lost wages is based on 90 per cent of the worker's net earnings or income. Lawsuit protection. This includes protection for you, your workers and other parties covered by WCB.

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Personal Finance. Your Practice. Popular Courses. Key Takeaways Workers' Compensation Coverage B is an insurance policy that covers costs related to medical care and lost income for injured workers. This coverage is generally required by states if an employer has three or more employees including the owners of uninsured subcontractors and their employees. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

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