Workers’ Compensation Insurance for Electrical Equipment Manufacturers

Workers Compensation Insurance protects companies from financial damage if an employee suffers a workplace accident or a long­term occupational illness. It covers the employee’s medical bills and any lost wages or legal expenses related to a workplace injury. The manufacturing industry is very high risk and presents many accidents and injuries. In the Electrical Equipment Manufacturing Industry, workers’ compensation insurance is also a necessity.

While small and large electrical appliances are manufactured uniquely, all rely on intricate production lines and skilled workers. Any company that manufactures electrical appliances is characteristically vulnerable to a wide range of potentially disastrous risks that can have distressing financial consequences as well as physical consequences.

Employees who are working with electronics face the risk of occupational injuries for which they could hold the company liable. Accidents and on­the­job injuries are beyond a company’s control and often cannot always be avoided, and this is why it is essential to have workers’ compensation insurance.

Manufacturers of electrical equipment produce various equipment ranging from household refrigerators to industrial equipment. The employees work with complex production machinery which can cause serious injuries. Common injuries experienced by employees are (not limited):

 

– Minor cuts

 

– Puncture wounds

 

– Burns

 

– Foreign objects lodging in the eye

 

– Hearing impairment from noise

 

– Slips, trips, and falls

 

– Back injuries from lifting

 

– Repetitive motion injuries

 

– Electrocution

 

– Skin and eye irritations from chemical exposures

If an Electrical Equipment Manufacturer fails to carry workers’ compensation insurance, this can lead to criminal prosecution, fines, and expensive litigation. Failing to have workers’ compensation insurance is a criminal misdemeanor, punishable by a personal fine of up to $10,000 or one year in jail, or both in some states. If an employer is uninsured and a worker files a workers’ compensation claim, the employer is legally responsible for payment of all medical bills associated with the injury. This can be expensive and damaging to the business.

Workers’ compensation insurance policy limits are usually divided into two parts: Part A (employee benefits) and Part B (employer liability). Part A of the policy usually covers medical expenses, rehabilitation expenses, lost wages, and death benefits to the employee’s dependents and does not typically have limits or exclusions.

 

Employers’ liability limits or Part B are defined within each insurance policy. The owner of the Electrical Equipment Manufacturing company may choose to increase the limits for coverage.

 

The limit for workers’ compensation insurance is dependent on the state and type of claim. In most states, the limits are $100,000 per occurrence for bodily injury, $100,000 per employee for bodily injury by disease, and a $500,000 policy limit for bodily injury by disease. State fund policies do not provide employers’ liability coverage.

Workers’ compensation benefits exist to help employees who are injured while performing their duties. It provides the following benefits:

 

– Medical coverage including compensation for medications, hospitalizations, nursing care, medical equipment, like wheelchairs or walkers.

 

– An injured employee can receive wage benefits to cover a percentage of lost wages. These disability benefits are granted if injuries have left an employee unable to work permanently or temporarily.

 

– If an employee dies from injuries suffered in the workplace, workers’ compensation provides death benefits. These benefits are paid to the employee’s spouse, children, or dependents. Death benefits usually include a sum to compensate the worker’s family for their loss and coverage for funeral and burial expenses.

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 electrical manufacturing products segment. Below is the most common class code used in the industry.

 

Code 3179: Electrical Apparatus Mfg. NOC

The average price of a Workers’ Compensation Insurance policy for small and major electrical appliances manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history, and more.

 

The amount paid workers’ compensation is a specific rate based on every $100 of your business’s payroll. The premium is determined by your employees’ type of work (classification rate), your experience modification rate or claims history, and your payroll per $100.

UnderWrite Insurance Services is a national insurance agency that provides A-rated workers’ compensation insurance to cover electrical manufacturer employees. For a free insurance quote, submit an application below or give us a call at 201-580-6806.