Compensation Claims: 5 Tips for Handling Workers’ Comp Claims as a Small Business Owner

Most business owners understand the importance of workers’ comp insurance for small businesses. After all, it helps you protect your employees, comply with state laws, avoid fines, and enjoy lawsuit protection.

However, not all business owners understand how to navigate this form of insurance, what it will cover, their rights, and their obligations. If you’re about to hire your first employees, consider heeding the following advice:

Choose a Company You Can Trust

Not all insurance companies are equal; some provide a better experience for business owners and their employees than others. So, when purchasing workers’ compensation insurance for your employees, perform research to have confidence in your decision.

Read online reviews, request instant quotes through provider websites, and compare the terms of various providers to understand which options will suit your unique needs the best. The more you know about the different insurance companies, the easier it will be to make an informed choice.

Instruct Your Employee to Seek Medical Treatment

Once you’ve signed up with a suitable insurance provider, your employees will be protected in a workplace accident. Kickstart this protection by requesting that your employees immediately seek medical treatment for their injuries if they are involved in an accident.

Depending on your insurance company, your employees may be required to receive care from a medical provider that forms part of the insurer’s network. Otherwise, they may not be eligible for coverage.

Fill Out the Paperwork

After your employee has informed you of their injury, you can provide them with a workers’ compensation form to fill out. Typically, they’ll be required to provide some of the following information:

• Their name
• Social security number
• The nature of their injury
• Where their injury is
• When the injury happened
• How the injury occurred
• The names of any witnesses
• Information on any first aid provided
• Whether the accident happened during the normal course of work
• Whether anyone else was involved

You can also inform your employee of their rights to benefits and how you intend to handle their return to work after they’ve healed from their injuries.

File the Claim

With paperwork filled out and your employee seeking medical treatment, you can report their injury and file the claim form. Typically, as a small business owner, you are responsible for sending the claim form and supporting documents to your workers’ compensation insurance provider. However, your employee’s medical provider might also submit their own medical report to back up the claim.

Alongside filing your claim with your insurance provider, you might also be required to report the injury to your state’s appropriate body for workplace injuries.

Wait for the Company’s Decision

After filing your employee’s claim, all that’s left to do is wait for an answer. If the claim is approved, your insurer will inform you and contact your employee with payment details for them to receive the benefits they need when they’re not able to work.

Often, this payment covers their medical bills, medication they might require, a portion of their lost wages, and disability payments. Some insurance providers also allow you to negotiate a lump-sum settlement.

If a claim is denied, you may request a reconsideration or file a formal appeal through your state’s workers’ compensation board.

Handling a workers’ compensation claim as a small business owner can be daunting if you’ve never had to do it before. However, you’ll likely find that your chosen insurance provider will guide you through the process. Meanwhile, the steps above should help you do right by your employees.