You'll need to select a workers' comp program in Connecticut if you launch a new business with employees in the state. It's considered a regular business expense for companies that rely on employees. Here's a look at what every business owner needs to know about workers' compensation for business owners in Connecticut:
According to the state's Workers ' Compensation Act, businesses that hire one or more employees must carry workers' compensation insurance for employees. Even sole proprietors must enroll in a plan if they have part-time or seasonal employees. The law has exceptions for casual employees and remote workers for less than 26 hours per week. Your business can purchase this coverage through a private insurer. A sole proprietor with no employees is not required to carry the coverage.
Workers' comp pays benefits for employees to cover hospital bills related to an injury or illness that occurred at work. It also pays for lost wages due to the worker's inability to work. The coverage extends to ongoing care, including physical therapy. In addition, employees who use their vehicles for doctor appointments can get mileage reimbursement benefits. The state adjusts this rate every year up or down. In 2021, the mileage reimbursement rate was 56 cents per mile.
Depending on the situation, CT workers can receive additional benefits if they contract an illness or get injured on the job. If an employee becomes permanently disabled and cannot return to work, they can collect disability benefits for 52 weeks. The coverage includes funeral costs for employees who die on the job.
A worker can receive up to 75 percent of their regular wages through 308a benefits when they cannot work. The coverage also pays for job retraining for employees who must take on different tasks. In addition, if the health condition reappears, the employee can collect relapse or recurrence benefits.
Employees must report a claim of a workplace injury or illness immediately to their supervisor. The employer must notify the insurer right away. Then the employer/insurer begins making payments within 28 days for the loss of income. The forms for filing claims are available at the Connecticut Workers' Compensation Commission.
If the benefits provided to an injured employee do not cover all medical expenses, such as a very severe case, the employee may seek a legal settlement. That's why many employers in risky sectors raise coverage limits to ensure adequate coverage for worst-case scenarios. For example, construction companies often pay higher workers comp premiums due to increased risks of injuries.
When an employee files an illness or injury claim, the state entitles them to 75 percent of their after-tax average weekly wage. The maximum weekly compensation benefit in the state is $1,373. No benefits are issued if the employee becomes ill or injured outside the workplace.
The nature of the injury is a critical factor in determining benefits as to whether it involves temporary, permanent, or partial disability. If an employee is completely disabled, they will receive about 60 percent or two-thirds of their regular wage. The duration of payments relates to the severity of the medical condition.
Every business in Connecticut with employees needs to enroll in a workers' comp plan to meet state requirements. It also lets employees know you care about their well-being since labor is what drives revenue. Contact our experts at C.V. Mason Insurance Agency to learn more about workers' compensation in Connecticut.
