Workers’ Compensation
Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.
Who is Workers' Compensation Insurance for?
Employees sometimes get injured on the job, leaving them unable to work for a prolonged time frame. Employers are typically held responsible for their medical expenses and lost income in these situations. Workers’ compensation insurance responds to cover these particular costs. This policy ensures owners don’t have to dip into the business savings or face legal ramifications from employee lawsuits.
What’s more, most states — except for Texas — require employers to obtain this coverage. Noncompliance could result in jail time, hefty penalties and fees, and stop-work orders. Employers can purchase workers’ compensation insurance in various ways; however, buying it from private insurers is the most popular choice.
Employers
Employers with one or more employees are typically required to purchase workers’ compensation insurance.
Party to a Contract
Many states require companies to purchase workers’ compensation insurance for hired contractors depending on the area.
Seasonal Employers
Companies that engage trainees and part-time, seasonal, and temporary employees usually need workers’ compensation insurance.
Why you need Workers' Compensation Insurance?
Covers employees’ medical costs and lost wages
Most states require this coverage
Protects employees if they’re hurt on the job
$170B
Over 150,000 employees sustain work-related injuries, causing lost wages and time. These workplace injuries add up to more than $170 billion in direct financial loss.
49
Most states — except for Texas — require employers to obtain this coverage. Noncompliance could result in jail time, hefty penalties and fees, and stop-work orders.
7M
Every day, employees sustain 12,900 work injuries, which adds up to 7 million work injuries each year. Not only is this number astronomical, but the financial damages are, too.
What does Workers' Compensation Insurance cover?
Employees sometimes get injured on the job, leaving them unable to work for a prolonged time frame. Employers are typically held responsible for their medical expenses and lost income in these situations. What’s more, most states — except for Texas — require employers to obtain this coverage.
What Workers’ Compensation Does Not Cover
What Workers’ Compensation Does Not Cover
Workers' Compensation Claim Examples?
Equipment-Related Injury
A worker gets injured using extraction equipment, and the injuries sustained prohibit the employee from working (lost wages) and the associated medical expenses from addressing the injury.
Delivery
An employee delivers your product and gets into a car accident, and sustains injuries that prohibit them from working.
Employer's Liability Coverage
A worker gets injured using extraction equipment that is not up to industry standards, has been requested by the employees to fix/update, lack of safety protocols in place, etc. (Negligence)
Workers' Compensation Insurance FAQ’s?
Premium amounts for workers’ compensation insurance typically vary from business to business. But calculating workers’ compensation insurance is exceptionally unique because it depends heavily on the state. Although classification codes are standardized throughout the US, workers’ compensation rates are established by each state.
The basic estimation is:
Premium = (Payroll/$100) x Class Code Rate x Experience Modification Rate
For example, at a workers’ compensation rate of $1.35, a business with $100,000 in payroll can expect to pay around $1,350 in annual premiums. However only an exact quote from an insurance carrier will grant you a final figure.