Workers’ comp is the system put in place to cover medical expenses and lost wages for employees when they’re injured at work.
It is meant to protect your employees, but it also protects you should your employee choose to sue for damages.
Workers’ compensation insurance is the policy you may be legally required to carry in order to provide this coverage.
Think about it this way: just as you’d need car insurance to cover costs incurred as the result of an auto accident, you also need workers’ compensation insurance to cover any costs incurred as the result of a workplace injury.
Oklahoma Businesses Can Pick Their Own Provider
In 2013 and 2014, the Oklahoma Supreme Court upheld the constitutionality of a new Oklahoma workers’ compensation law that phased out the Oklahoma Workers’ Compensation Court, replacing it with an administrative system, the Oklahoma Workers Compensation Commission (OWCC), effective February 2014.
The OWCC will handle workers’ compensation claims made by injured workers instead of the Workers’ Compensation Court.
The new law also authorizes employers to opt-out of the state’s workers’ compensation insurance provider as long as they provide equivalent coverage for injured workers.
Oklahoma state law requires employers to provide workers’ compensation insurance for their employees, even if the employer only has one part-time employee. Employers with employees in Oklahoma must provide workers’ compensation coverage except where:
- Domestic or household employees where total payroll is less than $10,000 annually.
- Agricultural or horticultural employees where total payroll is less than $100,000 annually.
- Certain licensed real estate salespersons and brokers.
- Employees covered under Federal laws.
Where Can You Get Workers’ Comp Insurance?
In Oklahoma, workers’ compensation insurance is available through private insurance companies. If your business is unable to obtain coverage through other private insurers, you can get it through the CompSource, which is the state’s insurer of last resort.
There is also an option to self-insure, but this may not be advisable for smaller businesses, in part because it requires that a lot of money be set aside to cover potential claims.
What If You Don’t Have Workers’ Compensation Insurance?
If you don’t carry workers’ compensation insurance you may be subject to a penalty of up to $1,000 per day.
Your business also can be subject to lawsuit brought by the injured employee in district court. Failure to pay proper compensation to an employee or any penalty assessed by the WCC can result in your being legally prohibited from further employment of workers.
There are also potential penalties for failing to file the first notice of injury on time, not paying an injured employee’s medical bills on time, improperly terminating temporary WC benefits, improperly terminating an injured employee, and workers’ comp fraud.
You can check the Administrative Workers’ Compensation Act and WC administrative rules for more details.
Conclusion
We live in a new world filled with economic and social swings. Most of you reading this with Oklahoma businesses will have workers’ comp requirements and it is best to be prepared.
A little empathy and preparation for employees’ future will go a long way in securing and keeping the best talent for your Oklahoma Company!
Blog written by the Grandview Insurance team – GVI offers insurance for many of your business and personal needs. Fill out the form below for a quick quote from us!
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