Hospital Workers' Compensation Insurance
Workers’ Compensation Insurance provides medical and wage benefits to employees who are injured or become ill at work. This type of insurance also provides death benefits to an employee’s family if they die due to a work‐related injury. Workplace injuries are common and highlight the need for employers to protect their staff and business by having Workers’ Compensation Insurance.
Medical and healthcare‐focused businesses can range from hospitals and doctors’ offices to medical transcription companies to physical therapy practices. If your employees spend time protecting and taking care of clients, workers’ compensation insurance helps ensure that your business is covered in the event of a workplace injury.
Why Workers' Compensation Insurance
A hospital is a very fast‐paced environment with many cogs and pieces working together to ensure maximum operation. There are several departments and a large number of staff members from medical to ancillary who keep the hospital running smoothly. With so many moving parts, there are bound to be accidents and incidents that may cause injury to an employee.
An on‐the‐job injury to a member of your hospital staff can do more than just leave you with one less staff member. It can cause financial strain that could be devastating to your business, whether large or small. Workers’ compensation insurance helps alleviate that strain and keeps your hospital running in top conditions.
Common Injuries Experienced by Employees
The Types of injuries suffered by hospital staff vary depending on the type of job performed. While a nurse is involved in the heavy lifting of patients, a doctor may be injured as a result of a puncture or laceration from a surgical knife during a procedure. Not to mention the challenges caused by the high‐stress environment that is presented by a hospital.
Other common injuries include:
Repetitive stress injuries and musculoskeletal injuries that are a result of doing the same activity over and over again or that require overexertion and strain. In most cases, the hospital employees that suffer these types of injuries are orderlies, attendants, and nursing aids who may be responsible for lifting and transferring patients.
Needle sticks that are a result of routine blood draws or injections, as well as those in which patients are combative. Needle sticks can also occur when needles are improperly disposed of or when they fall.
The injuries experienced by hospital employees are certainly not limited to those mentioned here. They can include slips and falls and exposure to violence from patients or surrounding communities.
The Consequences of Not Having Workers' Compensation Insurance
In addition to being held responsible for medical expenses and lost wages, hospital owners can also be burdened with additional costs should the injured employee choose to file a suit against their employer. From legal fees to settlement payments, hospitals of all sizes can be negatively impacted by a liability lawsuit. Depending on the state regulations failure to carry workers’ compensation insurance can lead to jail time.
The Benefits of A Workers Compensation Policy
With workers’ compensation insurance, your business is protected with assistance in covering costs related to workplace injuries, including:
Initial medical care ‐ ambulance and emergency room visits
Ongoing medical care ‐ medication, physical therapy, and rehabilitation
Lost wages ‐ In the event that an employee may be unable to work temporarily or permanently, workers’ compensation will provide wage replacement to the employee.
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 hospital industry. Below are a few of the most common class codes used:
Code 8833: Hospital – Professional Employees
Code 9040: Hospital: All Other Employees
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
The Cost of A Workers' Compensation Policy
One of the biggest factors when selecting a workers’ compensation insurance plan is cost. For healthcare businesses such as hospitals, the premium is determined by a variety of factors, including the location, jurisdiction, and type of business, as well as other factors that are unique to your business. Hospitals can carry a large number of employees. Businesses with more employees pay more for workers’ compensation. There is a direct correlation between the number of employees at a business and how much the business pays for a workers’ compensation premium. For example, a hospital with over 10 employees can pay over US$2,000 per year for workers’ compensation. This figure increases when risk factors and salary are compounded.
The need for comprehensive workers’ compensation insurance is not limited to large hospital networks. Even small hospitals in the healthcare industry can benefit from business insurance to cover costs associated with workplace injuries.
UnderWrite Insurance Services is a national insurance agency that provides A-rated workers’ compensation insurance for Hospitals. For a free insurance quote, submit an application below or give us a call at 201-580-6806.