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Michigan Farm Bureau Family of Companies

Understanding the Basics of Workers Compensation Insurance

Most businesses are required by law to provide Workers Compensation Insurance. This coverage is essential to protect your employees and your company.
Date Posted: July 10, 2021

Workers Compensation Insurance: The Basics  

Most businesses are required by law to provide Workers Compensation Insurance. It protects employees by providing income and medical care if they are injured on the job. It also protects employers by providing coverage for lawsuits filed because of a work-related injury.

 Workers Comp Costs

As an employer, the amount you pay for Workers Compensation coverage varies according to your industry and claim history.

Here are ways to keep costs lower for all industries:

Train new employees
Pre-screen employees
Include safety in company culture
Manage claims proactively
Classify claims properly
Post safety guidelines

Workers Comp Audits  

If you are scheduled for a Workers Compensation audit, a small amount of preparation can save your business time and money.

Here are some ways your business can prepare for your next audit: 

  • Schedule a couple of hours to complete the audit. You do not want to be rushed during the process.  
  • Collect important records. Begin organizing payroll records, classification divisions, insurance certificates and other necessary documents. 
  • Become familiar with classifications and job duties. An auditor will most likely ask about multiple employees and their roles so compose a summary of each category.   
  • Request an audit worksheet from the auditor. Remember to ask for this form after the audit is complete and your Farm Bureau Insurance agent can review the final report with you.   

Workers Compensation is essential to protect your employees and your company. Contact an agent today to review your company’s approach to overall safety and claims management. We could help you find new cost-saving opportunities. 

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