Building and Property Management Workers’ Compensation Insurance
The responsibility of managing and taking care of properties does present the risk of injury. Employees who get injured on the job need medical treatment and loss wage coverage. This is where workers’ compensation comes in.
What Is Workers’ Compensation Insurance?
Worker’s Compensation insurance is a system where employers participate in a scheme to provide medical care and other benefits to any employee suffering an injury or illness related to the job, regardless of fault.
Workers’ compensation insurance covers employees who get work-related injuries for
– Lost wages
– Medical expenses
– Rehabilitation costs
– Benefits for temporary or permanent disability
In addition, it also provides death benefits to the employee’s family who suffers death on the job, including funeral costs.
Why do Building and Property Management Employees Need Workers' Compensation
Building and Property Management employees need workers’ compensation insurance as they can get hurt on-site and off-site while delivering their duties on the job. Workers’ compensation will cover them for
1. Immediate medical costs like Emergency room visit and ambulance ride
2. Ongoing medical costs, for medicine, treatment, and physical rehabilitation
3. Partial lost wages till the employee cannot work
Common Injuries Experienced by Building and Property Management employees?
Building and Property Management employees and employers are liable to get specific injuries, including:
– Eye strains
– Slip and falls
– Carpal tunnel syndrome
The Consequences of Not Having Workers' Compensation Insurance
Not having workers’ compensation insurance for building a property management employee can have severe consequences. If a worker gets injured, they may file a lawsuit. In addition, the employer has to pay out of pocket. Also, not providing this insurance is a criminal offense and misdemeanor, punishable by state penalties of up to $10,000 and one year in jail. If you get charged with a felony, the penalty can go up to $50,000.
Why Should Employers Go for Workplace Compensation Insurance?
Common law states that if the employer agrees to pay their part in workplace injuries,
regardless of fault, the employee would give up the right to claim against the employer if they get injured in the workplace. Typically, employers pay for compensation which is limited to:
• Medical expenses.
• Wage loss.
States have their distinct laws and provisions associated with situations related to property management workers’ workplace compensation. But, employees can sue the employer in case of workplace injury under the common workers’ compensation law. However, if the employer is compliant with the worker’s compensation law, it keeps him on the safe side to be sued for the same by a worker.
On the flip side, non-compliant employers won’t get the common law defenses. They are prone to a problem such as:
• Personally paying the cost of wage losses or medical expenses for the injured
• Injured employee(s) may file negligence lawsuits.
• States penalties for non-compliance: Based on the level of the infraction, the noncomplying employer may get charged with a felony or a misdemeanor.
Workers' Compensation Required Limits
The limits on a workers’ compensation insurance policy include employee benefits and employer liability. The employee benefits portion of the policy covers medical expenses, rehabilitation expenses, lost wages, and death benefits to the employee’s dependents. Employee benefits do not usually have limits or exclusions.
Employers’ liability limits are defined within each insurance policy. Business owners may choose to increase the limits for coverage. Each state sets the minimum required coverage limits. Legal, statutory liability limits in most states are:
– $100,000 per occurrence for bodily injuries
– $100,000 per employee for bodily injury by occupational disease
– $500,000 policy limit for bodily injuries by disease
At UnderWrite Insurance Services, we offer one million dollars insurance policies as well.
The Benefits of A Workers' Compensation Policy
A workers’ compensation insurance for Building and Property Management employees covers both the employer and the injured worker. It provides a safety net during an accident. In cases of worker injury on the job, whether on-site or off-site, the insurance company assists in covering the costs related to medical needs and wage losses until the worker can get back to work. It covers:
– Medical treatment
– Lost wages
– Disability benefits (Both temporary and permanent)
– Funeral costs or Death Expenses/ Dependent Compensation
It saves the employer from costly lawsuits, lets them comply with state laws and provides common workers’ compensation law defense, and saves financial losses.
The Common Workers' Compensation Class Code(s) Used
A class code is assigned by the National Council of Compensation Insurance (NCCI) or by state agencies based on the activities of the occupation.
There are many different workers’ comp class codes within the property management segment. Below is the class code(s) used:
Code 9012: Building or Property Management—Property Managers and Leasing Agents & Clerical, Salespersons, including those who operate at a separate location from the properties managed
Code 9015: Building or Property Management–All Other Employees
Code 8740: Apartment Or Condominium Complex Operation — Property Management Supervisors
The Cost of A Workers' Compensation Policy
The cost of workers’ compensation insurance for Building and Property Management employees may vary per the fixed rates set by the National Council of Compensation Insurance (NCCI). This rate is based on the job description and level of associated risk.
Premiums calculation is based mainly on the payroll numbers and the NCCI class code.
For Property Management, 9015 and 9016 are common standard codes for various categories of employees.
UnderWrite Insurance Services is a national insurance agency that provides A-rated workers’ compensation insurance to cover building and property management employees. For a free insurance quote, submit an application below or give us a call at 201-580-6806.