If you run a business and have employees, you’ll need to purchase Kansas workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Kansas, with some exceptions. It helps pay your employees’ medical bills if they sustain an injury on the job. And limits your liability for workplace accidents, is a requirement in most states, including Kansas, with some exceptions.
In Kansas, business owners can anticipate paying around $1.07 per every $100 of covered salary for workers’ compensation insurance. This means, for example, a company with an annual total payroll of $100,000 will pay approximately $1,070 for workers compensation insurance each year. Or around $89 a month. Several variables can affect these rates, though.
In general, though, the likelihood of an on-the-job injury at your workplace is what determines your workers’ compensation rates. Some types of employees may have lower workers’ compensation costs than those who undertake more labor-intensive tasks and are more vulnerable to injury. You can use a variety of workers’ compensation class codes when applying for coverage.
If one of your employees is injured at work or becomes ill because of workplace conditions. Workers’ compensation in Kansas 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) – Employees receive these payments if they are 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.
Kansas’s Workers’ Compensation Death Benefits
If your employee passes away because of a work-related injury or illness, their survivors will be eligible for death benefits. The following rules apply to death benefits:
- Survivors do not have to be citizens or residents of the United States to get compensation.
- Weekly death benefit payments are based on 67% of the deceased worker’s average weekly wage. Up to the maximum permitted by law.
- The minimum death benefit is 50% of the weekly average wage in the state.
- Except in situations where the benefits are going to a dependent child under the age of 18. The total death benefits cannot exceed $300,000.
- In Kansas, employers (or their insurers) are responsible for covering all hospital and medical payments associated with the fatal incident. As well as funeral costs up to $5,000.
- The surviving legal spouse or children who are completely dependent must receive an initial payment of $40,000 from the employer (or their insurer). Or the amount must be split evenly between the dependents.
Kansas’s Workers’ Compensation Laws
With a few exceptions, Kansas law mandates that every business have workers’ compensation insurance. Among the exclusions are:
- Employers in specific agricultural occupations
- Firefighters who work for relief associations
- Independent contractors who work in real estate
- Employers paying no more than $20,000 in annual gross payroll
Keep in mind that the $20,000 threshold for a workers’ compensation exemption applies to all payments. Including any wages earned outside of Kansas. The wages of sole proprietors and their families are not taken into account.
How to Buy Workers’ Compensation Insurance
If you’re looking for workers’ compensation coverage in Kansas, you should first look at getting a policy from a private commercial insurance company. EZ provides a simple online application for Kansas businesses to compare quotes from top insurance carriers, as well as licensed agents with insurance expertise who can help you choose the best carrier and policy for your business.
If commercial insurers are unwilling to provide you with coverage, you can purchase it through the Kansas Workers’ Compensation Insurance Plan (Assigned Risk Plan), which is run by the Kansas Insurance Department. An EZ agent can help you get this type of last-resort policy.
A group-funded pool and self-insurance are other options for getting workers’ compensation insurance. This would mean that you would agree to pay any workers’ claims out-of-pocket as they arise, as opposed to paying a premium and submitting claims to an insurance company. But you must prove to the Kansas Division of Workers’ Compensation that you have the financial resources to cover any potential workers’ compensation claims before you can self-insure.
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How to Get the Most Savings
Despite the fact that the majority of workers’ compensation costs are determined by factors that are out of your control, there are still ways to save. A safety program is an excellent way to avoid workplace injuries and claims. It is absolutely vital to have safety and proper working procedures in place, no matter your industry. Employees who have been safety trained are less likely to be injured, resulting in lower workers’ compensation costs for your business.
It is also advisable to regularly review your claims history. Examining your claims history can help you identify and correct patterns. Certain aspects of your operations may become a frequent source of claims, and so might need to be adjusted. By maintaining a close watch on potentially hazardous operations, you can save money on claims and on workers’ comp insurance.
One of the most efficient ways to save money is to properly classify your employees. When you apply for workers’ comp insurance, you will have to classify each employee based on their function, such as desk worker or laborer. These risk classifications have an impact on the cost of workers’ compensation, so make sure your employees are classified correctly. Not only that, but if you fail to properly classify your employees, you could be fined.
And finally, working with one of EZ’s licensed agents can save you hundreds of dollars per year. We specialize in insurance for a wide variety of small businesses and can find you the best policy for your business and your budget. Start a free online application today to start comparing workers’ compensation insurance quotes for your small business from leading U.S. carriers.
Kansas Workers’ Compensation FAQs
Are you required to have workers’ compensation insurance in Kansas?
With a few exceptions, Kansas law mandates that every business have workers’ compensation insurance. Employers in Kansas may be subject to a civil penalty of twice what would have been their annual workers’ compensation premium or $25,000, whichever is higher, for failing to maintain workers’ compensation insurance, or for failing to cover costs associated with work-related injuries and illnesses. Failure to hold workers’ compensation insurance is also grounds for closure by the State of Kansas.
How do workers’ compensation settlements work in Kansas?
An arrangement between the injured worker, employer, and insurer, known as a workers’ compensation settlement, will end a workers’ compensation claim. Both you and your employee benefit from this, since your employee will get the compensation they need, and you will be released from further liability.
If you and your employee reach a settlement, your employee can choose to receive the value of their claim as a lump sum or as a series of recurring payments, known as a structured settlement.
Once a settlement is reached, employees are required to release employers from any future obligations, frequently including medical expenditures, under both types of agreement.
What is the statute of limitations in Kansas?
The maximum time frame for submitting a workers’ compensation claim is 200 days from the date of the work-related accident or illness, or 200 days following the employer’s last benefit payment linked to the incident, according to Kansas workers’ compensation laws.
Why Use EZ
We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible. We give each of our customers our undivided attention. As soon as you fill out our form, you will receive instant, free quotes from your dedicated agent, who will give you personalized service and will work to understand your needs. We want to ensure that you make the best decision possible, and that you get the best coverage at the best price. Our services are completely free so check out your quotes today!
If you still have questions, feel free to give us a call at 877-670-3538. You will speak to 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.