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Pennsylvania Workers Compensation InsuranceGet A FREE PA Workers Compensation Quote As a Pennsylvania business owner that has employees, you should be aware of the Pennsylvania Workers Compensation Insurance coverages, so you can find the best policy to fit your Workers Compensation liability needs. About Pennsylvania Workers Compensation InsuranceWhen an employee sustains a job-related accident resulting in bodily injury or suffers an occupational disease in the course of employment, the employer is subject to liability. The Pennsylvania Workers Compensation laws establish this liability as well as the benefits of the injured worker. Generally, any employer who hires at least one employee, part-time or full-time, is required to provide workers compensation coverage. Employers requirements may be met by purchasing a Pennsylvania Workers Compensation Insurance policy from an insurance company for workers compensation. Eligible employers may opt to self-insure. Common Duties Of The Employer & BenefitsEmployers are required to exercise reasonable care for the safety of their employees. This general duty of care can be broken into these specific duties owed by the employer:
The employer is obligated to provide for medical expenses and lost wages for work-related disability or death. The self-insured employer or the employers insurance company directly pays the injured or disabled employee. The Pennsylvania Workers Compensation Act provides for a percentage of the average weekly wages (most often 66 2/3% of gross wages) to be paid as compensation. Workers compensation benefits depend on the status of the injuries. The status of injury are classified as follows:
The Pennsylvania Department of Labor and Industry is responsible for the administration of the Pennsylvania Workers Compensation Insurance law in PA. Classifications Of Pennsylvania Workers Compensation InsuranceClassifications are a way of grouping together businesses of similar types. Each insured employer is assigned a classification which most accurately describes its line of work. The Pennsylvania Compensation Rating Bureau (PCRB) assigns every business a classification code. In Pennsylvania, there are over 300 different classifications that are used in workers compensation insurance. Classifications ensure that types of businesses with low potential for loss do not pay the same rate as those with high potential for loss. For example, a company employing individuals who have desk jobs would not be expected to pay the same rate as a company employing factory workers, as there is a greater chance that a factory worker will be injured on the job. It is common for two employers in competition with each other to fall under the same classification code because they conduct the same type of business, although their operations may not be identical. For example, two theaters (one indoor and one drive-in) both are classified as code 967, even though their operations differ. In 1993, the legislature authorized insurance companies to create subclassifications which depart from the PCRB classifications. These subclassifications must be approved by the Pennsylvania Insurance Department. The rates for a subclassification may differ from the rates for the general classification code. How Much Should You Pay For Pennsylvania Workers Compensation Insurance?What you pay for Pennsylvania Workers Compensation Insurance coverage will depend on the insurance company you choose. Depending on your type of business, you are placed in a classification with similar businesses. Your basic Pennsylvania Workers Compensation Insurance premium is then determined. It is based on your classification code, the rate and an estimate of your annual payroll. The rate is derived from the insurance companys multiplier for your classification code. Businesses with premiums of at least $10,000 will receive an experience modification. This modifies their premium based on their loss history. Businesses with premiums less than $10,000 may qualify for a merit rating plan. The merit rating plan enables businesses to receive a 5% discount or surcharge based on their loss history. Your Pennsylvania Workers Compensation Insurance company may conduct an audit after your policy expires. The purpose of this audit is to determine if you are paying the correct amount of premium. Pennsylvania Workers Compensation Insurance company auditors may ask for records that verify your business payroll. Also, your business operations may be reviewed to determine if there has been a change in your classification. Changes in business operations or corrections to initial classification may result in an increase or decrease in Pennsylvania Workers Compensation Insurance premium. Auditing ensures that the business owner was not misclassified at the beginning of the policy period. The actual premium will be determined by the insurance company when the policy expires. The payment of premium that was made at the beginning of the policy period was only a "deposit." The employer will be billed or reimbursed for the difference. |