The Beehive state takes worker’s compensation very seriously, with the state’s Insurance Department overseeing the settlement process.
Employers are legally required to cover their employees, with a few exceptions, for injuries sustained doing job-related tasks. This insurance system also has no-fault coverage, which means that workers are covered regardless of whether the accident was their fault. The exceptions include where injuries were self-inflicted or due to alcohol or drug abuse.
That said, as a Utah business owner with employees, you definitely want to understand workers comp to ensure you stay compliant. So, here is everything you should know about Utah workman’s comp.
What Is Covered Under Utah Workman’s Comp?
Workers’ comp is meant to cover liability when a workplace accident causes injury to one or more employees. In Utah, insurance pays injured employees’ medical benefits and indemnity. And in case of a worker’s death, the benefits to the dependents.
Medical benefits usually cover expenses for treating injuries or illnesses, including hospital bills, doctor’s fees, medication, prosthetics, travel expenses, and long-term or lifelong medical rehabilitation.
As for indemnity, these benefits cover employees for wages not earned as a result of missing work to recover from their injuries or illness. Indemnity benefits are calculated based on an employee’s wages.
Lastly, we have death benefits. These include funeral expenses as well as weekly payouts to the deceased worker’s dependents. That said, workers comp’ has a statute of limitation. So, an injured worker must file a claim within a year of sustaining the injuries for the claim to be viable. In addition, they must notify their employer of injury or sickness within 180 days.
When is Workers Comp Not Mandatory?
Generally, workers comp is required for employers with one or more employees. However, Utah state law provides exceptions to this rule for:
- Sole proprietorships
- Partnerships where there are no other employees
- Casual and domestic workers
- Some insurance and real estate brokers
- LLCs, where members do most of the work
If you fall under these exceptions, workers comp is not legally required. However, you can still get coverage for your workers if you want. As you know, this coverage is actually beneficial to your business.
Cost of Workers’ Insurance in Utah
So, as a business owner, how much can you expect to pay for workers’ comp? Unfortunately, Utah workman’s comp has no standard cost as different insurance companies use different criteria. Generally, your premiums will depend on the following:
- The type of business/ industry
- Size of your payroll
- Worker’s kind of work
- Claim’s history
Usually, industries with a higher risk of injuries pay more in premiums.
What Happens When You Break Utah Workers’ Comp Laws?
Since workman’s comp is a legal requirement, not having a policy as an employer is a serious offense that attracts stiff penalties. Violating the laws can see you pay up to $1,000 in fines or even get barred from doing business in Utah.
Get Workman’s Comp for Your Workers to Avoid Unexpected Financial and Legal Consequences
As a business owner, you know that accidents can happen at any time, and it’s important to protect your employees and your business with Utah workman’s comp coverage.
And as much as it’s a legal requirement for nearly all businesses in the state, Utah workman’s comp is a crucial safety net that helps both employees and business owners feel secure. Noncompliance can lead to costly fines and litigation.
So, protect yourself, your business, and your employees with a Utah workman’s comp policy today.