24 Jun Worker’s Compensation for Distributors
Jack walked into the warehouse, clipboard in hand, with a list of supplies to move into the semi trailer waiting by the loading dock. He carefully maneuvered both his forklift and skid steer to gather products and load them. All was going well until he came to the next-to-last item on the list. A pallet loaded with boxes were perched on a middle shelf, and the plastic wrap surrounding the boxes had caught on the shelf’s support post. Jack hopped off his forklift, grabbed a ladder, and climbed up so he could move the boxes enough that they would no longer catch on the post. As he hit and pulled at the boxes, loose supplies on the next shelf up fell and knocked Jack off the ladder. Worker’s compensation for distributors would soon be very important to Jack and his employer.
Working in a distribution facility can be somewhat dangerous, and the potential for accidents and injuries is higher than some other industries. Even when work safety guidelines are followed to the letter, freak accidents can still occur and leave a worker sidelined for a period of time. Because Jack’s injuries kept him from lifting heavy boxes or reaching for items above his head, he was temporarily unable to continue working as a distributor. Normally, being in an accident and being unable to work would mean high medical bills and no income. However, Jack’s employer carried worker’s compensation insurance, which meant he would be eligible to receive a number of financial benefits.
Worker’s compensation for distributors provides two financial benefits to an employee who is injured on the job. The first is payment for medical bills, prescription medications, and even physical therapy. A second benefit is a salary stipend, which is usually equal to two-thirds the employee’s normal salary. Additionally, employers can also benefit from worker’s compensation coverage, because an injured employee typically agrees to gives up their right to sue for injury-related damages in the future when they agree to receive worker’s compensation benefits.
Unlike other forms of insurance, worker’s compensation is paid by the employer. The employer cannot withhold money from an employee’s paycheck to cover the premium, nor can they demand that an employee pay to receive coverage. You could say that this is an example of “the cost of doing business.”
Most states require that an employer provide worker’s compensation coverage to all employees, regardless of job description or their employment status (part-time/full-time). Without this coverage, the business may not be able to receive certain licenses needed to operate legally in the state. Worker’s compensation coverage can be purchased from a state’s division of worker’s compensation, a trade industry’s connection, or even a private insurer.
There are many reasons why worker’s compensation for distributors is important. Safety training and well-organized warehouses are helpful, but the chance for injury still remains. To ensure that you, your employees, and your distribution business have the best financial protection; speak with an agent who specializes in worker’s compensation insurance today.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.