Accounting Firms, Accountants and Certified Public Accountants (CPA's)
For Accounting Firms, particular small ones with just a few employees, the possibility of a workplace accident or illness poses a serious hazard to the small business owner. Employees’ injuries on the job can have a devastating effect on a small Accounting Firm, and owners need to be prepared.
While Accounting Firms may think their business is low risk for Workers’ Comp, CPA’s, accountants and other support staff are just as exposed to risk for a workplace injury or illness as those in other professions.
Workers’ compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees.
Also, a Return-to-Work program can assist with practices to help better manage Workers’ Comp exposures and reduce your total cost of risk.
Workers’ Comp Protects Your Accounting Professionals and Support Staff
If one of your staff accountants slips-and-falls, injurying themselves in the office, or someone develops a repetitve motion injuryy, medical bills will pile up quickly. Workers’ Compensation will cover an injured staff-member’s medical expenses and a portion of their missed wages. Workers’ Comp will also protect the insured employer in the event an employee files a suit for workplace negligence.
What Exactly Does Workers' Comp Cover for Accounting Firms?
Workers’ compensation insurance provides coverage in three main areas:
- Worker injury and illness expenses;
- Worker injury suits; and
- Compliance with state laws.
Workers’ compensation can help pay for an injured employee’s:
- Immediate medical costs, including ambulance ride and emergency room expenses;
- Ongoing medical costs, such as medications and physical rehabilitation;
- Partial lost wages while the employee is unable to work; and
- Death benefits, including funeral expenses, in fatal incidents.
Employee Injury Suits
Employer’s Liability Insurance – usually included in a Workers’ Comp Insurance policy – provides protection when an worker decides to file suit against their employer. Even if the employer is not at fault, the mere accusation of negligence can result in expensive litigation.
Employer’s Liability Insurance can cover:
- Legal fees;
- Court costs;
- Monies for Settlements and/or Judgments; and
- Witness fees.
What is the Cost for Workers' Compensation Insurance for an Accounting Firm?
The cost paid for Workers’ Comp Insurance is a specified rate for every $100 of your payroll. The premium is determined by:
- The type of work done by your employees – known as the classification rate;
- Your Experience Modification Rate or “Experience Mod” – which describes your claims history; and
- and Payroll based on every $100.The type of work done by your employees – known as the classification rate;
- Your Experience Modification Rate or “Experience Mod” – which describes your claims history; and
- and Payroll based on every $100.
The formula is usually expressed as:
(Classification Rate X Experience Mod) x Payroll per $100 = Premium
State Law Dictates Workers’ Compensation Requirements
Each of the 50 States has their own sets of laws and regulations for Workers’ Comp requirements. Some states require Workers’ Comp for each and every employee, including Part-Time employees. Still other states only require Workers’ Comp for five plus employees.
Self-employed or independent contractors, sole proprietors, and partners do not have to have Workers’ Comp, you are certainly allowed to purchase Workers’ Compensation Insurance to protect the well-being and financial soundness of your accounting firm.
Discover information about Your State’s Workers’ Comp requirements.
Some states have what are called “Monopolistic State Funds.” These are North Dakota, Ohio, Washington and Wyoming. In these states, you must purchase Workers’ Comp Insurance through their Monopolistic State Fund. If you purchase workers’ comp through a monopolistic state fund, it may not include employer’s liability insurance. But, you can still purchase it from a private insurance company to provide this coverage.
Effective Risk Management can Lower Costs
Employees working in an office environment are still at risk for an injury. At any worksite, a staff member could slip on a floor or trip over something. An on-the-job injury can lead to a Workers’ Comp claim – and an increase in premium.
Effective risk management should include safety training and the development of a safe work area. These steps should reduce workplace injuries and Workers’ Comp insurance rates as a result.
Other Vital Insurance Coverages for an Accounting Firm
Workers’ Comp Insurance does not provide coverage for all risks. Accountants and Accounting Firms Finance should also consider:
- General Liability Insurance: Covers common risks such as slip-and-fall injuries and damage to a client’s property.
- Professional Liability Insurance: Covers professional mistakes, errors and omissions, such a miscalculation or missing a deadline.
- Cyber Liability Insurance: Provides coverage against data breaches and cyberattacks – paying for recovery expenses and other associated costs.
Our Workers’ Comp Insurance professionals specialize in working with professional firms, and our coverages are designed to meet the needs of your firm. Get a small business Workers’ Comp quote now.
