If you run a business and have employees, you’ll need to purchase Connecticut workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Connecticut, with some exceptions. It helps pay your employees’ medical bills if they get injured on the job. And limits your liability for workplace accidents, is a requirement in most states, including Connecticut, with some exceptions.
Connecticut business owners pay an average of around $1.20 per $100 of covered payroll for workers’ compensation insurance. For reference, that means a company with a total annual payroll of $100,000 will pay around $1,200 for workers’ compensation insurance for the year, or around $100 a month. These rates greatly vary depending on several factors.
Workers’ compensation costs are determined by the likelihood of an on-the-job injury. To ensure you’re paying the right amount for your premiums, you can use a variety of workers’ compensation class codes if you employ more than one type of worker. For example, some office workers may have lower workers’ compensation costs than those who do more labor-intensive tasks and face higher risks, so you should be sure to classify each of them correctly.
If one of your employees is injured at work or becomes ill because of workplace conditions. Workers’ compensation in Connecticut can help pay for their medical bills. The weekly average wage of an employee is used to calculate workers’ compensation benefits. The type of claim determines the exact amount.
The most important thing that workers’ compensation does is offer coverage for your injured employee’s medical treatment. This would include doctor’s appointments, hospital stays, and surgical procedures. Following a return to work, an employee may need ongoing care. Such as follow-up appointments or extra surgeries; workers’ compensation will also cover these medical bills.
Additionally, if the incident causes permanent or temporary disability, the employee will receive compensation in the form of weekly or lump sum payments. If your employee suffers a temporary disability, their injury is preventing them from performing their regular job while they recover. They have a permanent disability if a doctor determines that they will not fully recover from their injury.
These two classifications fall into two subcategories:
- Temporary total disability (TTD) – These payments will be made if your employee is unable to work at all during their recovery.
- Temporary partial disability (TPD) – TPD payments will be made if your employee is still able to work, but with certain restrictions, such as requiring lighter duties or fewer hours. Even if your company does not provide work that meets these requirements, the employee may still be eligible for these payments.
- Permanent total disability (PTD) – If the accident or illness leaves your employee unable to work at all, even after recovery, they will be eligible for PTD payments.
- Permanent partial disability (PPD) – If an employee has permanent impairments but is able to work with those impairments, they will be eligible for PPD.
Employees in Connecticut may be eligible for additional benefits, including 308a benefits, depending on their circumstances. 308a benefits provide up to 75% of your employee’s wages. Connecticut law also allows for relapse or recurrence benefits if your employee has a setback during their recovery.
Connecticut’s Workers’ Compensation Death Benefits
If an employee dies as a result of a work injury or illness, their surviving dependents qualify for death benefits. Their dependents receive $4,000 in burial expenses under Connecticut workers’ compensation law.
The employee’s surviving spouse can receive death benefits until they remarry. They will also receive benefits for their surviving minor dependent children.
The death benefit will be divided equally among the dependents if the children do not live with the surviving spouse or are not that spouse’s children. The benefit will be paid to the surviving parent or guardian of a minor child.
Connecticut’s Workers’ Compensation Laws
The Workers’ Compensation Act of Connecticut requires businesses with one or more employees to carry workers’ compensation insurance.
There is one exception: employers do not have to provide coverage for household workers who work less than 26 hours per week. All other employees, whether part-time, full-time, or seasonal, have to have coverage under your business’s workers’ compensation insurance.
In addition, you do not have to have workers’ compensation coverage if you are a business owner, member of an LLC, corporate executive, self-employed, or independent contractor.
But considering the high cost of medical bills, you should think about getting this policy even if you don’t have to. Individual health insurance policies might not fully cover a work injury, and they do not offer reimbursement for lost wages, as many workers’ comp policies do.
How to Buy Workers’ Compensation Insurance
There are a few options in Connecticut for purchasing workers’ compensation insurance.
One option is to work with a licensed commercial insurance company. Through which you can buy a private workers’ compensation policy. For Connecticut businesses, EZ offers a simple online application for comparing quotes from top insurance carriers; speak to one of our licensed, experienced agents for your options.
Another option for purchasing a policy is Connecticut’s Workers’ Compensation Trust, a state-run program that sells only workers’ compensation insurance. It actively competes with private insurers for business and effectively serves as the assigned risk pool for workers’ compensation insurance. This risk pool enables businesses that would otherwise be unable to obtain workers’ compensation insurance to do so.
Finally, you can self-insure your business. Which would mean paying any worker’s comp claims out-of-pocket as they arise. To do this you have to meet certain requirements. Including having at least 300 employees or assets worth at least $100 million.
Get free instant quotes by entering your zip code in the bar below. No hassle. No obligations.
How to Get the Most Savings
The majority of the cost of workers’ compensation comes from factors beyond your control. However, there are still ways to save. Implementing a safety program is a great way to reduce workplace injuries and claims, which will lower your premiums. So regardless of your industry, it is important to have safety and standard operating procedures in place. Employees who have safety training are less likely to get hurt, lowering your workers’ compensation costs.
It is also a good idea to regularly review your claims history. Evaluating your claims history on a regular basis can help you identify and correct patterns. You might discover that certain aspects of your business operations are frequently causing claims. This allows you to adjust the operation to make it safer. You can save money by keeping an eye on potentially dangerous operations.
Correctly classifying your employees is one of the most effective ways to save money. When you apply for your workers’ compensation policy, you will classify each of your employees depending on their job’s risk. And this risk classification influences the cost of your workers’ compensation. For example, you might pay less to insure an office worker than you would a manual laborer. It’s also important to correctly classify your employees because you may receive a fine if you fail to do so.
Begin a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. insurers. EZ’s agents specialize in insurance for a wide range of small businesses. Working with our agents can save you hundreds of dollars a year on coverage.
Connecticut Workers’ Compensation FAQS
Are you required to have workers’ compensation insurance in Connecticut?
Connecticut law does require workers’ compensation insurance for businesses with at least one employee. The Connecticut Workers’ Compensation Act imposes a number of penalties for failure to maintain adequate workers’ compensation insurance for your business.
If the Connecticut Workers’ Compensation Commission (WCC) discovers that you lack adequate coverage, it may issue a temporary hold on your operations. Employees will not be able to work until your insurance carrier receives payment for workers’ compensation insurance. The WCC will impose a $300 fine per worker each day that you do not have coverage. Fines and penalties for lateness or failure to comply can total thousands of dollars.
How do workers’ compensation settlements work in Connecticut?
A workers’ compensation claim can cover an injury from a single accident as well as injuries that build over time. Such as repetitive strain injuries, hearing loss, or occupational illnesses like mesothelioma.
According to Connecticut law, once the insurer and the employee reach an agreement on the terms of a settlement, the employee may not file a claim or file a lawsuit against their employer for reimbursement of medical treatment for that injury in the future.
What is the statute of limitations in Connecticut?
The employee mush filed a workers’ compensation claim in Connecticut within one year of an injury. Such as damage to a body part or disfigurement. If your employee is suffering from an illness, the claim limit is within three years of the first symptom occurrence.
Why Use EZ
We do everything we can to make shopping for workers’ compensation insurance simple and stress-free. We give our customers our undivided attention and provide personalized service and rapid results. You will receive free quotes from our agents who will understand your needs as soon as you fill out our form. We want to make sure you make the best decision possible and get the best coverage at the best price. And, best of all, our services are completely free!
If you still have questions, feel free to give us a call at 877-670-3538. You will connect with a local insurance agent who can answer all of your questions, and help you find the workers’ compensation policy that works best for your business.