All About Georgia Workers’ Compensation Insurance Requirements

For those of you who have just moved to Georgia and want to open a business, you must know the applicable government regulations. The Georgian government requires business owners to have business insurance. Georgia workers’ compensation insurance requirements are businesses that employ at least three employees.

The government’s reason for requiring business owners in Georgia to provide business insurance is as a form of financial responsibility. If the loss occurs, either the business owner or the employee can get compensation from the insurance provider.

This article will dive deeper into workers’ compensation insurance. To get the whole information, make sure to keep scrolling.

What is Workers’ Compensation Insurance?

Workers’ compensation is a type of insurance that will provide compensation for medical expenses for employees who are sick or injured related to work. Furthermore, this insurance will also provide cash benefits to employees who meet the compensation requirements.

The business owner is the party that pays workers’ compensation premiums and does not involve employees in paying compensation. If a business owner claims employee medical reimbursement or weekly cash benefits, it will be made by the insurance provider under the directions of the Workers’ Compensation Board.

Workers may lose their right to compensation if the injury is caused by alcohol, drug poisoning, intent to harm themselves, or even injure others. The insurance provider does not provide compensation for those problems because it has nothing to do with work.

What Requires Business Owners to Have Workers’ Compensation Insurance?

Georgia workers’ compensation insurance requirements are for business owners who employ a minimum of three employees regularly, either part-time or full-time. Hence, these employees can get compensation related to work.

In case your business is incorporated, you as a business owner or business officer will be considered as an employee. In addition, the Georgia government permits officers to waive their own coverage if your business consists of five officers.

Meanwhile, businesses that employ less than three employees are not included in the mandatory government regulation. However, that doesn’t mean you don’t need workers’ compensation insurance either. You should purchase this insurance so your business finances or personal finances are not shaken if at any time you have to bear a loss.

If you still have to save a lot to develop your small business, then you can look for an alternative to workers’ compensation insurance at an affordable premium rate.

What Does Workers’ Compensation Insurance Cover?

In general, workers’ compensation insurance will provide coverage for workers’ medical expenses due to work accidents. Furthermore, insurance providers will generally provide missed wage compensation when workers have to leave for recovery as well as work-related accidental disability benefits.

However, in Georgia workers’ compensation insurance will help business owners who have the following employees:

• Broken hands from tripping over boxes or business property during work.
• The cost of an emergency visit will also be covered by the insurance provider and there are no follow-up appointments.
• Workers who have torn ligaments as a result of lifting heavy objects can get medical coverage which includes surgery and physical therapy.
• Old office workers will get carpal tunnel syndrome coverage.
• Repetitive strain injury treatment costs are also included in the coverage of workers’ compensation insurance.

You can also show a certificate of insurance as proof of coverage. Through this document, your clients will know that your business meets the Georgia workers’ compensation insurance requirements.

If a workers’ compensation insurance policy provides comprehensive coverage, it will enable you to get additional coverage such as the following:

• Injured and temporarily disabled employees will receive disability benefits.
• If a work accident causes death, the employee’s family will receive death compensation and funeral expenses. The amount of the death benefit is two-thirds of the average weekly wage.
• Employees who are sick or injured and need a long healing process will receive compensation for missed wages when they return to work.
• Comprehensive coverage also enables employees to receive compensation for ongoing care.
• Tendonitis that develops due to years of poor office ergonomics and is a cause of repetitive stress injuries will also be covered by insurance providers.

What Are the Consequences of Not Having Workers’ Compensation Insurance in GA?

If you decide to run a business without buying workers’ compensation insurance, the consequences are criminal and civil penalties. The state of Georgia has a Board of Workers’ Compensation that will investigate allegations of fraud or business owner non-compliance with established regulations.

Below are the consequences that must be faced by business owners who do not comply with Georgia government regulations.

1. Liability

Business owners or employers who do not have worker compensation insurance must be responsible for providing compensation to workers. The indemnity coverage is the same as the coverage provided by the insurance provider.

Hence, if a worker has an accident related to work, then the business owner is obliged to pay medical expenses and ongoing care which is the worker’s right. Simply put, the Georgian government will require employers to provide compensation as is the case with workers’ compensation insurance but using personal money.

Also, remember that injured workers are entitled to compensation for civil law and criminal law fees of up to 10% for not getting insurance.

2. Civil Penalties

Any employer who does not meet Georgia government requirements will be subject to penalties ranging from $100 to $1,000 for each violation. The cost of the violation penalty for making a false statement to the board is $1,000 to $10,000 for each violation.

Furthermore, the government will charge violations from $500-$5,000 if the business owner or employer is unable to provide the required coverage.

3. Criminal Penalties

Employers will be found guilty if proven to have violated or intentionally neglected insurance coverage. If the offense is a misdemeanor, the employer can face up to one year in prison or a fine ranging from $1,000 – $10,000, or both.

Does Your Business Meet Georgia Workers’ Compensation Insurance Requirements?

Ultimately, Georgia workers’ compensation insurance requirements are obligations that must be carried out by employers with at least 3 employees. Neglecting workers’ compensation insurance means violating government regulations and will be subject to punishment, both criminal and civil penalties.

In fact, having workers’ compensation insurance provides many benefits for employers because there is no need to cover losses to workers using personal funds. Let’s immediately buy workers’ compensation insurance!