Every business in Hawaii with employees is legally required to carry workers’ compensation insurance. Why is Workers’ Compensation Insurance Important? The purpose of this policy is to protect employees who are injured, fall ill, or are killed on the job by compensating them for their losses. Business owners are in turn protected from paying these losses out-of-pocket and from any lawsuits that injured workers may file against a business for their workplace injuries. Without worker’s compensation insurance, employers are vulnerable to expensive lawsuits.
What does workers’ compensation cover?
Workers’ compensation insurance provides compensation for injured workers’ medical expenses, lost wages, disability, death, and rehabilitation costs.
What’s not covered by worker’s compensation insurance?
While workers’ compensation insurance policies can be fairly comprehensive, there are certain situations that worker’s compensation policies usually won’t cover:
- Injuries that happen while commuting to or from work
- Injuries that happen during recreational activities at the workplace (such as an optional after-hours potluck)
- Injuries that happen as a result of intoxication or substance abuse
Why Is Workers Compensation Insurance Important?
Business owners are responsible for the safety of their employees in the workplace. Carrying workers’ compensation insurance is, therefore, both necessary and beneficial for employers. Here are some of the benefits of carrying workers’ compensation insurance:
Legal liability coverage
The legal liability of an injured, sick, or deceased worker can be enormous; enough to bankrupt a business in some cases. Worker’s compensation insurance is designed to protect businesses from being sued for any injuries, fatalities, or illnesses their workers suffer on the job or as a result of their job.
Coverage for occupational illnesses and conditions
When workers are around toxic substances as a part of their job, there is a risk of exposure. Sometimes this exposure leads to development of respiratory conditions or cancer. Occupational illnesses can hurt a worker’s quality of life and productivity and seeking medical care is the best way to help workers return to health. Worker’s compensation insurance covers these medical expenses to ensure workers are not stuck with the cost of care.
Vocational rehabilitation expenses
Sometimes workers suffer a permanent disability that prevents them from returning to the position they had at the time of the injury. Workers’ compensation insurance will pay to rehabilitate the employee for a different position at your company or get them ready to obtain other employment opportunities.
Compensation for lost wages
Workers’ compensation covers the temporary or permanent lost wages of the injured worker, depending on whether the worker suffered a partial or total disability.
Makai HR offers comprehensive workers’ compensation solutions
At Makai HR we provide our customers with comprehensive workers’ compensation solutions to ensure they have the protection they need for any workers’ compensation claims that may happen. Services include:
- Workplace Safety Training & Guidance
- Safety Manual / Policy Development
- Claims Verification
- Claims Management Support
- Safety Incentives
- Basic WC Trainings including: measuring safety training, office economics, indoor slips, fall protection
- OHSA Inspection & record-keeping support
From securing coverage at competitive rates to claims management, Makai HR offers a hassle-free, comprehensive workers’ compensation solution.
Not excited about employer laws? That’s okay; we’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions.
With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to operate your business.
What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!