Pennsylvania Workers Compensation laws state that every business owner, who has active employees, is required to purchase Workers Compensation Insurance. If you have employees on your payroll, Workers Compensation is needed. If you hire sub-contractors, you should contact your Insurance Agent, before allowing them to work on your behalf.
What does Workers Compensation Cover?
Workers Compensation will cover your employees, if they sustain a work related injury or illness. Workers Compensation will provide for medical expenses, and wage loss benefits if you are unable to work after the injury or illness.
How do I purchase Workers Compensation Insurance in Pennsylvania?
You have two options, when looking to purchase Workers Compensation Insurance. You can purchase from Private Insurance Companies or Agency’s, like McCollum Insurance Agency. You can also purchase from the Pennsylvania State Workers Insurance Fund. If you are looking for professional advice, before you purchase Workers Compensation, call one of the friendly staff members at McCollum Insurance Agency.
What if my business fails to purchase Workers Compensation?
The information below is provided by the Pennsylvania Department of Labor and Industry . For additional information from the Pennsylvania Department of Labor and Industry, click here
In the event an employer is uninsured at the time an employee suffers a compensable work-related injury, the department will pursue reimbursement from the employer of monies paid from the Uninsured Employers Guaranty Fund in relation to the claim. Reimbursement will include costs, interest, penalties, fees under section 440 of the Worker’s Compensation Act and attorneys fees. The department will also pursue prosecution against the uninsured employer under section 305 of the Act.
In addition, an uninsured employer faces grave civil and criminal risks for failing to maintain continuous workers’ compensation coverage. Not only can the employee sue the employer in tort for work-related injuries or diseases, in which suit the employee may recover amounts in excess of those allowed under workers’ compensation, but the employer and those individuals responsible to act on its behalf may each be criminally charged for each day’s failure to maintain continuous workers’ compensation coverage.
Misdemeanor convictions can result in the potential imposition of a $2,500 fine and up to one year in imprisonment for each day the employer is in violation of the requirement to maintain workers’ compensation coverage. Felony convictions can result in the potential imposition of a $15,000 fine and up to seven years imprisonment for each day the employer intentionally violated this requirement. Further, the employer and those individuals responsible to act on its behalf may be required to pay all benefits awarded by a workers’ compensation judge.
The Bureau of Workers’ Compensation investigates employer compliance with workers’ compensation laws and may initiate the filing of charges against employers and individuals responsible to act on its behalf if workers’ compensation coverage is not continuously maintained. Further, any individual, including competitors, may seek county district attorney approval to file a private criminal complaint against an employer who fails to maintain workers’ compensation coverage when required to do so.
What is the Cost of Workers Compensation Insurance?
The cost of Workers Compensation will depend on the following:
- Your Industry – For example, a professional office will have a lower cost, when compared to a construction company
- Your Experience – If you are purchasing Workers Compensation for the 1st time, you will typically see a higher cost, when compared to a business that has carried Workers Compensation Insurance for many years
- Claims Experience – A business owner who has a favorable claims experience, will see discounts on their Workers Compensation Insurance
- Your Payroll – For example, a company with a payroll of $250,000, will pay much less, than a company with a payroll of $50,000.
For more information on Workers Compensation in Pennsylvania, call McCollum Insurance.
In Philadelphia, Montgomery, and Bucks County call our Philadelphia office at 215.508.9000.
In Delaware County and Chester County, call our Newtown Square Office at 484.420.7800.