Workers’ Comp Insurance for Plumbing Companies in Georgia
Plumbing companies are generally required to get and maintain a Workers’ Compensation policy. While self-insuring is an option, it might not be a viable one for most plumbing companies in Georgia.
Before getting insurance, plumbing companies might weigh the pros and cons of self-insuring versus purchasing a Workers’ Compensation policy in Georgia. In most cases, self-insuring is risky, as it places sole responsibility for compensating an injured worker on the plumbing company that employs them. Self-insuring also requires additional administrative work from plumbing companies. It is also not financially feasible for many businesses in Georgia, based on the application fees alone. Because plumbers can be injured at any moment and can file a claim for almost any injury, it is generally wiser for plumbing companies to purchase a Workers’ Compensation policy instead of self-insuring.
Call NPN Brokers at (866) 340-9120 to learn more about how our Georgia Workers’ Compensation insurance brokers can help your plumbing company find coverage today.
Self-Insuring vs. Purchasing Workers’ Comp for Plumbing Companies in Georgia
Initially, self-insuring for Workers’ Compensation might seem like an appealing prospect to plumbing companies in Georgia. When you self-insure, you do not have to pay premiums and have total control over the claims process. In reality, self-insuring for Workers’ Compensation is a risk, and employers should understand those risks before making the change.
Eliminating monthly premiums is a top reason why plumbing companies and other businesses are somewhat interested in self-insuring. While that is understandable, companies that self-insure have to cover costs associated with a worker’s damages if injured on the job. Alternatively, those costs can be covered when a plumbing company pays monthly premiums to its Workers’ Compensation insurance carrier. Injuries sustained by plumbers can range from minor to severe, meaning expensive medical bills might be included in the benefits a worker receives. Plumbing companies that self-insure have to pay those benefits to an injured worker at once instead of doing so by way of paying monthly premiums over the years. Furthermore, if multiple plumbers are injured on the job at the same time and you self-insure, your plumbing company might find itself in a very difficult financial situation in Georgia.
In reality, only a few plumbing companies may be able to self-insure Workers’ Compensation in Georgia. To start the process, companies must submit an application to the State Board of Workers’ Compensation. Within that application, you must provide three years of financial statements proving that your plumbing company is financially secure enough to handle the cost of possible Workers’ Compensation claims. Fees necessary to self-insure in Georgia add up to thousands of dollars, making the application process very expensive and not financially feasible for many plumbing companies. Comparatively, all plumbing companies are eligible to get Workers’ Compensation coverage through a private insurer in Georgia.
If your plumbing company self-insures Workers’ Compensation in Georgia, it will have to cover the costs of an employee’s injuries if they file a valid claim. If you have Workers’ Compensation through a private provider, your carrier will pay the benefits out. When plumbing companies have Workers’ Compensation, they never have to risk liability for any worker’s injuries whatsoever. The only instance when a company would be liable is if it is required to have coverage and does not have it. This includes plumbing companies that wish to self-insure but were denied that ability. Plumbing companies that are self-insured but are not able to handle the financial toll of Workers’ Compensation claims might go bankrupt and face additional penalties in Georgia.
When you have Workers’ Compensation through a private carrier, most administrative aspects of the claims process are handled by your insurer. You do not have to process claims, investigate accidents, or decide whether or not a plumber gets benefits. When plumbing companies self-insure, the claims process typically occurs in-house. This might mean extra work on behalf of your plumbing company that would be virtually non-existent if you had Workers’ Compensation insurance. Our Workers’ Compensation insurance brokers can help you to reduce administrative tasks even further by pairing your plumbing company with a carrier that does not require lengthy annual audits. Typically, self-insuring requires more work on behalf of plumbing companies, whereas getting insurance from a third-party carrier does not.
When Plumbers in Georgia Can File a Workers’ Comp Claim
Owners of plumbing companies know that plumbers are not immune from being injured on the job. Provided Workers’ Compensation covers them, plumbers in Georgia can file a claim for most injuries.
Virtually any injury sustained in the workplace makes a plumber eligible for Workers’ Compensation. Most plumbers visit clients’ homes or businesses to provide their services, meaning they are rarely physically present at a company’s headquarters when injured at work. That does not mean they are ineligible to file Workers’ Compensation claims, as plumbers can recover benefits as long as they were operating within the scope of their employment when hurt in Georgia.
This means that most injuries, from minor sprains to broken bones, qualify a plumber to file a claim for Workers’ Compensation benefits. Injury severity is not a factor when determining if a worker can recover benefits, meaning your plumbing company should always have coverage in Georgia. Unless they are independent contractors, plumbers will be able to file Workers’ Compensation claims when hurt on the job. Common causes of injuries among plumbers in Georgia include falls from ladders and burns from soldering pipes. Plumbers might also sustain repetitive motion injuries in Georgia, which can be costly if not covered by Workers’ Compensation. If you do provide insurance for the plumbers you employ, your company could be financially responsible for compensating an employee who is hurt at work in Georgia.
Plumbing Companies Can Get Workers’ Comp in Georgia Today
To get a quote from our Workers’ Compensation insurance brokers, call NPN Brokers at (866) 340-9120.
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