Reasons to Have Adequate PA Workers Comp Insurance

Machinery Workers

It’s a matter of law that most states require an employer to carry worker’s compensation insurance for all employees, both full-time and part-time, and PA workers comp insurance requirements are no different. For many employees and employers, this is a coverage that brings a great sense of relief, since the type of work they perform often requires their bodies to perform strenuous tasks, and there is always the risk of job-related injuries occurring.


Employees appreciate knowing that their medical expenses and any time missed from work will be duly compensated. The employer enjoys the fact that they are in compliance and not likely to be embroiled in a major lawsuit, and that they are doing their part to create a safer work environment and helping their injured workers to a quicker recovery.


This is a type of insurance for which many insurance companies compete because it is both essential, and a lucrative service that they provide. The insurance market for worker’s compensation insurance is very competitive and insurance companies are often willing to offer discounts to attract new customers.


A coverage lapse can be detrimental


It is very important for business owners to always be certain that their coverage remains in force, never allowing their workers compensation insurance to lapse as this could bring about a financial disaster greatly affecting their ability to do business. Aside from any legal implications, it is likely clients will pay the price if they let their workers comp lapse, in the form of considerably higher premiums on re-application. One way to avoid this from occurring is to always pay premiums on time as late payments could also cause carriers to write off a client with a non-renewal notice.


Factors driving up worker’s compensation insurance costs


New technologies and new drugs, while helping with the care and treatment of patients in new and exciting ways also contribute to the continued rise in medical costs. These advances, made available to hospitals and physicians to treat injuries, can be quite costly, especially in the early stages while patents are in effect.


It is quite common for a hospital to charge minimally around $1,000 for an emergency room visit, or up to $5,000 per day or more for an admitted patient. Surgery, if required, will also drive costs up, which is why employer’s need to have adequate PA worker’s comp insurance. We know and understand that medical costs can quickly grow beyond the financial resources most companies have available, making coverage a must for every employer.


photo credit: Seattle Municipal Archives cc