Do e-commerce Businesses Need Workers’ Compensation Coverage? Workers’ comp is paid based on a stringent medical records review and careful scrutiny. E-commerce businesses should ideally obtain workers’ comp coverage.
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Do e-commerce businesses require workers’ compensation? Are there workplace hazards or illnesses related to e-commerce stores? Packing and shipping products for an e-commerce store may not be as hazardous as working in some other job environs. However, there is always the possibility of getting injured from slips, falls, cuts, strains and other injuries. Therefore, workers’ compensation coverage is a good option for online businesses also because it would ensure a safe and secure workplace for their employees. Stringent requirements such as medical records review and careful scrutiny ensure that the benefits are paid only to deserving applicants. Workers’ compensation is a no-fault insurance, and the benefits may be issued irrespective of who is at fault – employer, employee or a third party. At the same time, this insurance is a safety net for employers because, employees may not sue their employers for a covered injury. e-commerce business owners, just as brick-and-mortar store owners, may have a statutory requirement to buy workers’ compensation insurance to make sure that when accidents happen, their workers get the financial support and care they need to compensate for lost wages and to recover completely. The U.S. Department of Labor’s Office of Workers’ Compensation Programs administers 4 main disability compensation programs that provide medical treatment, wage replacement, vocational rehabilitation, and other benefits to certain workers or their dependents who experience injury or illness related to their job. Since these programs are state-regulated, the requirements for a particular retail store or online shop would be according to individual state laws. Online business types include the following among others: Consumer goods Toys Home appliances and electronics www.mosmedicalrecordreview.com
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Online professional services Clothes, accessories and jewelry Health and beauty Office supplies & B2B Discount retailers Resale sites Auto and machine parts What are the coverage options available for e-commerce businesses? In many states, you can purchase workers’ insurance from a private insurance company. This company can be the same one your business uses for other forms of insurance such as general liability. The insurer can be a state-backed or state-managed fund. Some states may even allow very large businesses to finance their own workers’ compensation program. Individual state programs determine what government agency or private insurer an e-commerce business purchases the insurance from. e-commerce businesses will make premium payments for the insurance coverage, just as for other forms of insurance. The premium paid depends on factors such as the kind of jobs being covered, how large the payroll is, and the business’ claim history. A company that has its workers engaged in hazardous jobs may have higher premiums to pay. Now, let us look at the reasons why e-commerce businesses should also obtain workers’ compensation coverage. Medical care and lost wages for employees: An employer is responsible for paying the medical bills and lost wages of a worker who gets hurt or becomes sick on the job. Workers’ comp will cover these expenses. www.mosmedicalrecordreview.com
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Employer’s liability: The segment employer’s liability of Workers’ compensation covers four types of lawsuits: o consequential bodily injury (the injured worker’s relative /family member suffers an injury or illness because of the worker’s workrelated injury); o loss of consortium (when the injured employee cannot engage in marital relations any more with his/her spouse because of the injury); o dual capacity lawsuit ( where the employer is held responsible as the employer as well as the person who supplied the product that hurt the employee); o third-party lawsuit ( the injured worker brings a lawsuit against a third party for the injury, and that third party may bring a lawsuit against the employer as well.) States such as North Dakota, Ohio, Wyoming and Washington do not allow employer’s liability to be a part of workers’ compensation insurance. In such states, employers are required to buy stop-gap insurance as part of your liability policy. This will provide the same protection as that provided by employer’s liability coverage. Protection for business travel: This is important if your employees have to travel for business reasons. This insurance will cover employees even if they are not in the e-commerce store. That brings us to a very significant conclusion – just because you don’t have a physical office it doesn’t follow that you don’t need workers’ compensation coverage. Workers’ compensation attorneys, medical record review companies serving the workers’ compensation sector, and other stakeholders in the industry know that even if workers’ comp insurance is not mandatory in a state, www.mosmedicalrecordreview.com
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employers should still consider obtaining it because it provides important protection for them if there is an employee injury or illness. Employers must of course take constructive steps to manage known risks and thereby lower workers’ compensation claims. The lesser the claims, the lower will be the premium employers have to pay. To ensure workplace safety, employers can take measures such as having a third party audit the facility for possible hazards; offering safety training for employees; making sure that workers have the proper tools; and holding regular safety meetings.
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