Category Archives: Workers’ Compensation and Lowering Costs

Your Guide To Workers Compensation Insurance Coverage

Did you know that all employers that operate in Massachusetts are required to carry workers’ compensation insurance for their employees and for themselves if they are an employee of their company? In addition, the requisite applies no matter the number of employees, or the number of hours worked. The only exception is for domestic based employees who must work at least 16 hours a week in order to be covered under a workers’ compensation policy.

However, members of a limited liability company (LLC), partners of a limited liability partnership (LLP), or sole proprietors of an unincorporated business are not required to carry workers’ compensation insurance for themselves. This exception does not apply to employees who are not members of the LLC or LLP. They must still be covered. So what does your worker’s compensation insurance coverage actually cover? In essence, workers’ compensation helps to cover the costs that are related directly to work injuries.

Your policy covers all medical expenses, missed wages during the recovery period, and compensation for fatal injuries. Your workers’ compensation insurance coverage also protects you from lawsuits that are related to work injuries. If an accident occurs at your workplace, workers’ compensation covers the cost of immediate care, such as an ambulance ride or an emergency room visit. It also helps pay for the injured party’s surgical procedures, medications, hospital stays, and other medical bills.

Ongoing care, such as continuing medication and physical rehabilitation, is also covered. Obviously, a serious injury can prevent one of your employee’s from returning to work for days, weeks, or even months. Your workers’ compensation insurance coverage often pays for part of the wages lost while an employee is recovering from a workplace injury or occupational illness. If a work-related incident happens to be fatal, your workers’ compensation policy pays death benefits that cover funeral expenses, and help support the deceased employee’s family.

Last but certainly not least, workers’ compensation insurance coverage typically includes liability insurance that protects the business, and principals of the business. For example, the insurance policy protects you and your business from any lawsuits that claim an employee as injured due to your negligence. If your employee sues you in a court of law the workers’ compensation insurance covers your attorney fees, court costs, and settlements or judgments that go against you.

That being stated, it is crucial to carry enough workers compensation insurance coverage to fully protect you.  Otherwise you may very well end up going out of pocket for the difference. For example, if you lose a lawsuit that requires a $1 million dollar payout and you only have $500,000 coverage, you are responsible to pay the remaining balance of $500,000. On the other hand, if your workers’ compensation insurance coverage is $1 million or more, you will be fully covered. That means you will not need to go out of pocket to pay the debt.

If you own a business, you need to have the proper business insurance policies in place. Please consult with a professional insurance agent that specializes in providing workers’ compensation insurance. It is important to fully understand exactly what you are buying when it comes to insurance policies. If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business related insurance needs now and in the future.

Your Construction Business is at Great Risk IF…

Your Construction Business Is At Great Risk If You Lack An Appropriate Workers Compensation Insurance Plan 

Most construction contracting companies hire employees for various jobs.  From construction workers to office help, there are typically multiple people on the payroll at all times. That means your organization is required to carry workers compensation insurance. It is not only smart business, it happens to be the law. The policy protects you and your company by paying employees for their lost time and medical expenses if they are injured on the job, or become sick due to workplace related hazards.

Workers Compensation Insurance Protects The Business, The Business Owner(s), and The Employees

An appropriate workers compensation insurance plan certainly goes a long way in helping your employees in times of trouble, and protecting your assets when you are technically at fault for causing those times of trouble. In essence, the proper coverage can make the difference of you sleeping well at night, or constantly waking up with nightmares. If an employee happens to sue your business for pain and suffering and or mental hardships that the accident or illness caused the policy covers those items as well.

Workers compensation insurance not only protects you and your company, it also protects your employees.  Although you are forced to carry a workers compensation policy if you have employees on payroll, many business owners do not fully understand exactly how important it is to their business. The intent the following information is to clarify that for you.

Additional Information About Workers Compensation Insurance Coverage

Workers compensation covers injury and or illness that are related to work only.  It does not cover accidents or illness that your employees are suffering due to any outside factors such as non-work related automobile accidents, including the commute to work in their own vehicle.  It does not cover your employees if they are injured falling off of a ladder at their home. Workers compensation certainly does not cover any health related issues, such as cancer or heart disease that are unrelated to their work for your company.

That being stated, if an employee is injured on a jobsite, or doing a job related task than the workers compensation insurance does cover that situation.  If a worker becomes sick due to inhaling certain chemicals than that would also fall under the workers compensation insurance umbrella.

Even More Information About Workers Compensation Insurance Coverage

In addition, if the employee is injured during a fight that they started, or takes part in a self-inflicting injury, your policy is not responsible. If a former employee tries to claim that they were injured while working for you after they have quit, been laid off, or fired they are not eligible for workers compensation under your policy. However, if the employee suffers from stress or chronic health concerns such as back problems due to work related tasks than they may be entitled for coverage under your company’s policy.

Last but certainly not least, if an employee is under the influence of alcohol or drugs, or is simply playing around and gets injured or sick while at work that is not covered under workers compensation insurance.


In conclusion, if one of your payroll employees becomes hurt or sick directly related to a workplace incident, than appropriate workers compensation insurance plan will go a long way in protecting the business from being sued. Do not leave your contracting business vulnerable to a crippling lawsuit. For more information about Workers Compensation Insurance, other types of business insurance, or personal insurance please contact The Zawada Insurance Agency today and one of our licensed, experienced, and dedicated agents will answer any and all questions that you may have. We will also help you to calculate the great deal of risks that are associated with your business in order to create the best general liability policy available. We look forward to working with you.

Workers’ Compensation and Lowering Costs

How Business Owners Can Protect Themselves  

If you are a business owner, you absolutely must have Workers’ Compensation Insurance. This protects you from liability if any of your employees should be injured on the job. But there are also many things you can do to prevent accidents and reduce the chances that you will ever need to rely on this insurance. Read on to find out more.  

What Workers’ Compensation Insurance Covers

Often referred to as “workman’s comp,” this type of insurance is basically liability coverage for your employees. From offices to construction sites, no workplace is immune to the possibility of an employee accident or unforeseen event. As long as you’re protected with Workers’ Compensation Insurance, it will cover the cost of medical expenses if the employee is injured on the job. It will also cover any lost pay the employee would have earned while he or she is out with an injury or illness.  Perhaps most importantly, this type of insurance will cover any legal fees you may incur if an employee should file a lawsuit against your company because of their on-the-job injury or illness. Never underestimate the need for this kind of insurance. You may be surprised at how quickly legal fees can pile up!

How to Prevent On-the-Job Accidents

No matter what your business, your employees could have an accident at any time. That’s why it’s important to train all of your employees on proper safety procedures for your type of business. Hold frequent trainings, so new employees are made aware as well. Having a safety procedure manual is also helpful.

Always be sure to employ good safety practices particular to your business. For instance, if you own a restaurant, make sure you have fire safety procedures in place for cooks and anyone working in the kitchen.

Construction companies are especially vulnerable because employees will be around heavy equipment that could be hazardous and particulate dust that can cause respiratory illnesses. If employees aren’t taught correct procedures, they could hold heavy tools incorrectly and hurt themselves.

In addition to safety training, consider ways to make your business safer. Be sure floors aren’t slippery, any loose equipment is secured and have your office building inspected for mold and other allergens that can cause diseases after long-term exposure. Check for carbon monoxide levels and make sure everything adheres to safety standards.

Outside, have your walkways cleared of snow in the winter and parking lots properly lit. You don’t want the grounds to be high-risk areas for crime.  Be sure to have adequate signage, clearly indicating entryways and exits. Schedule regular maintenance checks to ensure that everything is working properly—electrical, HVAC, elevators, cook tops for restaurants, water and pipes, and anything that needs to be maintained.

Taking these precautions can help to ensure your employees remain safe. For more information on insurance for business owners, please contact Zawada Insurance Agency. We work to give you comprehensive coverage at a competitive price.

Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.