If you run a business and have employees, you’ll need to purchase Louisiana workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Louisiana, 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 Louisiana, with some exceptions.
In Louisiana, workers’ compensation insurance costs around $1.44 for every $100 of covered payroll. That means a business with a total annual payroll of $100,000, for example, will pay around $1,440 for workers’ compensation insurance each year, or around $120 a month. These rates can vary, though, depending on a variety of factors.
The likelihood of an on-the-job injury at your workplace will help determine your workers’ compensation rates. When applying for your policy, you can classify different employees with different class codes to make sure you’re paying the right amount. For example, some office workers may have lower workers’ compensation costs than those who perform more labor-intensive tasks and are exposed to greater risk.
If one of your employees is injured at work or becomes ill because of workplace conditions. Workers’ compensation in Louisiana 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.
Louisiana’s Workers’ Compensation Death Benefits
If an employee dies from an injury or illness they sustained at work, their dependents can receive workers’ compensation death benefits. The state of Louisiana presumes that the surviving spouse and children were dependent on the employee, and so entitled to benefits.
There are a few requirements for spouses and children to receive death benefits:
- The worker’s surviving spouse must have been living with them at the time of death.
- Children must have lived with the worker at the time of death, be under the age of 18, or be physically or mentally incapacitated and unable to earn a living.
Other family members who were financially dependent on the deceased worker and lived in their household may also be eligible for death benefits. Unless they are receiving benefits on behalf of shared children, unmarried partners are ineligible for benefits.
- The surviving spouse is entitled to 32.5% of the deceased worker’s average weekly wage.
- A surviving spouse and one child are eligible for 46.25%.
- A surviving spouse and two or more children are eligible for 65%.
- If there is no spouse, a surviving child can receive 32.5%, two children 46.25%, and three or more children 65%.
- If there is no spouse and no children, a dependent parent can receive 32.5%, and two dependent parents can receive 65%.
- No spouse, children, or parents, a dependent sibling may receive 32.5%, with an additional sibling receiving 11% up to 65%.
Workers’ compensation insurance also covers burial and funeral expenses up to $8,500.
Louisiana’s Workers’ Compensation Laws
Workers’ compensation laws in Louisiana require you to have this type of coverage as long as you have at least one employee. This law applies to employees who are:
- Seasonal workers
Keep in mind that if you don’t have employees, you may not need workers’ compensation insurance. Corporate executives can usually request an exemption from this insurance if they own a certain percentage of a business.
Exemptions from workers’ compensation in Louisiana include:
- Employees of a private residential landlord
- Musicians and performers whose services are detailed in a performance contract
- Real estate brokers
- Employees of an unincorporated private farm
- Any landowner who provides services such as exploration, development, production, or mineral transportation.
- Crew members on aircraft engaged in dusting or spraying operations
It’s also important to note that the requirements for workers’ compensation vary depending on the type of business you own. But if you have employees, you will most likely require a policy.
How to Buy Workers’ Compensation Insurance
If you’re looking for workers’ compensation coverage in Louisiana, you should first look into a policy from a private commercial insurance company. EZ provides a simple online application for Louisiana 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 you are unable to obtain private insurance, you can purchase it through the competitive state fund operated by the Louisiana Workers’ Compensation Corporation. This option is for you if you are unable to qualify for ordinary coverage because of your business’s high-risk status. This insurance coverage should be your last resort.
You might also have the option to self-insure, if you meet certain requirements and submit an application to the Louisiana Office of Workers’ Compensation Administration. This would mean that, instead of paying a premium and submitting claims to an insurance company, you would agree to pay all workers’ comp claims out-of-pocket as they arise.
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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 vulnerable to injuries, 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.
Louisiana Workers’ Compensation FAQs
Are you required to have workers’ compensation insurance in Louisiana?
Yes, in Louisiana, the law requires almost every employer to carry workers’ compensation insurance. If you fail to carry workers’ compensation insurance, you may face fines up to $250 per employee for the first violation and $500 per employee for each subsequent violation, with a maximum fine of $10,000.
You can also be charged with a criminal offense if you willfully fail to provide workers’ compensation insurance. Or knowingly provide false information to the Louisiana Workforce Commission, which oversees workers’ compensation insurance in Louisiana.
The court could also serve you with an injunction requiring your business to cease operations until you purchase the proper workers’ compensation policy.
How do workers’ compensation settlements work in Louisiana?
Workers’ compensation settlements in Louisiana include disability benefits and medical coverage. In most cases, if a workers’ compensation settlement is reached, your insurer will pay the injured worker a lump sum. After you reach a settlement, your employee will no longer be able to file claims relating to the accident or injury against you or your insurance company.
If your employee is already receiving workers’ compensation benefits, they may be eligible for a commutation, which means that the weekly benefits may be added up and discounted to the present value (by up to 8% per year), and then paid out as a lump sum.
The Office of Workers’ Compensation mediates workers’ compensation claim disputes.
What is the statute of limitations in Louisiana?
Workers’ compensation claims in Louisiana must be filed within one year of the date of injury, or one year of the date of disability diagnosis. Claims cannot be filed more than two years after the date of the accident or injury.
Employers must file a First Report of Injury or Illness form within 10 days of becoming aware of an injury or illness that results in more than one week of lost time.
Why Use EZ
We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible. And 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 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.