Machine Shop Workers' Compensation Insurance
Owning a business comes with different types of risks, including financial and the prospects of injury to employees. Having workers’ compensation insurance will help to ensure your employees are protected. This is particularly true if you are a machine shop owner.
Why Workers' Compensation Insurance
Workers’ compensation is a type of insurance that protects businesses and their employees. It is also called workers comp and is a must-have for companies that want to ensure they can cover their employees’ medical expenses or make up for lost wages if they become injured on the job.
Machine shop employees are involved in the cutting, drilling, and shaping of metal. They use tools like heavy metals as well as machinery used in cutting and welding. They also use different machinery to help in vehicle repair. Hence, there is a strong possibility that accidents can occur and cause injuries, making worker’s compensation insurance excellent.
Common Injuries Experienced by Employees
Strains: Repeated movement of the arms while using the machinery or handling material
can lead to pain in the muscles or repetitive strain injuries.
Chemical inhalation: Workers are exposed to toxic fumes and gases that can lead to
serious respiratory problems if inhaled.
Eye injury: Metal dust from grinders and other debris can fly into the eye leading to
damage. Eye injuries include welder’s arc and flash burns.
Cuts: Working with cutting tools and other sharp metals can cause scratches on bruises to
the worker’s arms, hands, and other body parts.
Burns: Using extremely hot metals like molten metals can lead to severe burns to the body
The Consequences of Not Having Workers' Compensation Insurance
Machine Shop operators who don’t have workers’ compensation insurance can be faced with penalties such as financial loss from paying fines to an employee who gets injured on the job and decides to sue. Employers without worker’s compensation can also lose money from paying medical expenses for employees who get severe cuts or burns or other injuries. If employers fail to cover the costs, they risk being imprisoned depending on their state’s laws.
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 Benefits of A Workers' Compensation Policy
Here are some of the key reasons why employers should get worker’s compensation insurance for your employees:
– Workers’ compensation can cover the medical bills for employees who become
injured while at work. This will also cover the expenses for transportation to the
doctor or to drug stores to retrieve medication.
– Workers’ compensation insurance also covers rehabilitative care and disability
– This type of insurance also makes up for lost wages when workers are sick and
unable to work.
– If the injury leads to the employee’s death, workers’ compensation will cover
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 Machine Shop segment. Below is the class code(s) used:
Code 3632: Machine Shop NOC
The Cost of A Workers' Compensation Policy
Workers’ comp costs vary depending on the following factors:
– The state that your business operates in
– The size of your business
– The industry
The cost for workers’ compensation depends on the state where the company is located, how big the company is, and the type of industry. Your workers’ compensation claims history can also affect your workers’ compensation premium. The workers’ compensation premium for an auto repair shop can be charged $39 and above per $100 of wages.
UnderWrite Insurance Services is a national insurance agency that provides A-rated workers’ compensation insurance to cover machine shop employees. For a free insurance quote, submit an application below or give us a call at 201-580-6806.