Many states and cities are enacting new minimum wage laws, and all will feel the impact. Not only will the cost of goods go up, but also every business will see an increase in workers’ compensation costs. Those business with a high minimum wage work force will see an even higher premium increase.
In California for example, the wage increase affects 43% of the state’s workforce and makes California’s minimum wage the highest in the country. Oregon Just passed a statewide minimum wage as well. Alaska, Arkansas, Colorado, Connecticut, Hawaii, Massachusetts, Michigan, Nebraska, Rhode Island, South Dakota, and Vermont also increased minimum wages in 2016.
Increased wages will mean increased payroll, and your workers’ compensation premiums are based on your payroll. With increased payroll, come increased benefits, which lead to increased overall claims costs and experience mods.
What is Workers’ Compensation?
Workers’ compensation insurance is insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties.
Why Your Business Needs Workers’ Compensation Insurance
When one of your employees gets hurt on the job or has a work-related illness, only workers’ compensation will cover them. Health insurance benefits will not provide coverage for on the job injuries.
North Bay Insurance Brokers, Inc. provides insurance to businesses in Sonoma, Napa, Marin, Santa Rosa, Petaluma, American Canyon, and surrounding areas.
North Bay Insurance Brokers, Inc. understands the value of good employees. We know that your day-to-day operations depend on their hard work, expertise, and dedication, and if you supply them with quality benefits and plans, they can work with the peace of mind assurance that they’re properly protected.
Having the right Workers Compensation plan from North Bay Insurance Brokers, Inc. can allow your business to ensure payments and cover expenses if an employee is injured from a work-related accident. Injuries can range from car accidents and back injuries to equipment malfunctions and, in some unfortunate cases, death.