If you run a business and have employees, you’ll need to purchase Utah workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Utah, 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 Utah, with some exceptions.
In Utah, business owners can expect to pay, on average, $0.83 for every $100 of covered payroll. That means, for example, a business with a total annual payroll of $100,000 will pay approximately $830 per year for workers’ compensation insurance, or around $69 a month. This is only a rough estimate, since factors such as your location, the different rates for staffing types (laborers vs office workers), and your claims history can all have a significant impact on your rates.
One of the biggest factors in determining your rates for workers’ compensation insurance is your employees’ risk, or the likelihood of a workplace injury occurring at your business. To assist insurers in determining risk exposure, and to get the best rates for your business, you can use a variety of workers’ compensation class codes. This is important because it costs more to insure certain employees. For example, office employees may have lower workers’ compensation costs than those who work outside of your office and face more risks.
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) – 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.
Utah’s Workers’ Compensation Death Benefits
If one of your employees dies as a result of a workplace injury or accident, their dependents will be entitled to death benefits. This includes coverage for burial and funeral expenses.
Survivors are entitled to weekly income benefits under the Utah Workers’ Compensation Act. This amount is calculated based on 67% of the employee’s average gross weekly pay, depending on whether the deceased worker had dependents, and how many.
Utah’s Workers’ Compensation Laws
In Utah, most employers are required to carry workers’ compensation insurance. However, self-employed people (or sole proprietors), independent contractors, partnerships, and limited liability companies (LLCs) are exempt from having to purchase this type of policy.
Purchasing workers’ compensation is a wise financial decision even if it is not required. Your health insurance might not fully cover a work-related injury, leaving you liable for costly medical bills. In addition, health insurance never covers lost wages, which workers’ comp often does.
As soon as you hire even one employee, you must purchase workers’ compensation insurance to cover that employee, as well as all future employees. The following are a few exceptions to this requirement:
- Some agricultural workers
- Temporary workers
- Domestic workers
- Some insurance and real estate brokers
You can choose to exempt some or all of your business’s corporate officers and directors from being covered by workers’ compensation insurance. In this case, though, you must first notify your workers’ compensation insurer and apply for an exemption with the Utah Labor Commission.
How to Buy Workers’ Compensation Insurance
In Utah, you can buy a workers’ compensation insurance policy from a private insurance carrier that is licensed by the state to offer workers’ compensation insurance.
If your business is considered high-risk, and you are unable to obtain workers’ compensation insurance through the voluntary market mentioned above, you can obtain coverage from the Workers’ Compensation Fund of Utah. This is Utah’s last-resort workers’ compensation insurer.
If you meet certain criteria, you may also be able to self-insure your workers’ compensation claims. This means you will pay for any workers’ compensation claims out-of-pocket as they arise, instead of paying a premium and submitting claims to an insurance company. In order to be eligible for self-insurance, you must file an application with the Utah Labor Commission.
If you need help finding a policy, Ez’s agents can help sort through all of your options, and find you the best workers’ comp insurance for your business.
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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.
Utah Workers’ Compensation FAQs
Are you required to have workers’ compensation insurance in Utah?
Yes, nearly all Utah employers must carry workers’ compensation insurance. Violations of Utah’s workers’ compensation statute can result in severe penalties, including:
- A fine of at least $1,000
- An injunction prohibiting doing business in the state
- Loss of the so-called “exclusive remedy,” which shields employers from liability for workers’ compensation benefits.
How do workers’ compensation settlements work in Utah?
Workers’ compensation claims can be settled through the Utah Labor Commission. Even if all parties have expressed a desire to settle, Utah law requires the commission to approve these agreements.
In Utah, there are two kinds of settlement agreements:
- Compromise settlements are used when the parties disagree on whether the sick or injured worker is entitled to workers’ compensation benefits.
- Commutation settlements are used when everyone agrees that the worker should receive workers’ compensation benefits.
What is the statute of limitations in Utah?
Employees in Utah must file a workers’ compensation claim within one year of the date of injury or illness.
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.