Workers’ compensation insurance for media and advertising professionals

If a publishing assistant slips on a spilled drink in the lunchroom and breaks an arm, or an editor develops carpal tunnel syndrome, it can lead to expensive medical bills, or even a lawsuit. Workers’ compensation insurance helps pay for medical bills, missed wages, and other costs related to a work injury.

Sole proprietors might decide to buy this coverage for themselves, as it provides financial protection against work injury claims that health insurance could deny.

• Immediate medical costs, such as an ambulance ride and emergency room expenses
• Ongoing medical costs, such as medications and physical rehabilitation
• Partial lost wages while they are unable to work

Typically included in a workers’ comp policy, employer’s liability insurance provides protection for media and advertising business owners when an employee decides to sue over an injury.

Employer’s liability insurance can help cover:

• Attorneys’ fees
• Court costs
• Settlements and judgments

Even if a lawsuit is frivolous, without insurance, you could find yourself paying for a costly legal defense.

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula is:
Classification rate  x Experience modification rate  x (Payroll / 100) = Premium

The laws regarding workers’ comp will vary based on the location of your business and employees, since requirements are set at the state level.

For example, media and advertising businesses in California with even one employee are required to carry workers’ compensation insurance. On the other hand, Georgia employers aren’t required to purchase coverage until the third employee is hired.

While independent contractors, sole proprietors, and partners aren’t required to carry workers’ comp, you might want to consider purchasing workers’ compensation to protect yourself – and your income.

In certain states, media and advertising businesses must purchase workers’ compensation insurance through a monopolistic state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it may not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.

Even employees who only work in an office are at risk for an injury. A broadcasting producer could trip over equipment or a graphic designer could slip on an icy front step. If an employee is injured on the job, it could lead to an insurance claim and a rise in your premiums.

Business owners can manage risks by providing safety training to their employees and developing a safe work environment. For example, get rid of loose rugs and other tripping hazards, and make sure stairwells are brightly lit. Taking these steps could reduce workplace injuries along with insurance rates.

Workers’ compensation insurance protects your employees and to some extent your business, but it doesn’t cover common risks such as property damage and advertising injuries. Other recommended policies for advertising and media professionals include:

General liability insurance: This policy can cover expenses related to third-party bodily injury or property damage, including medical bills and legal costs.

Media liability insurance: This policy, also known as professional liability insurance, protects media and advertising professionals against lawsuits related to advertising injuries or work performance.

Business owner's policy: A BOP bundles general liability insurance and commercial property insurance at a discount. It helps pay for common lawsuits and property damage.

Cyber liability insurance: If a cyberattack exposes confidential client data, your business could be held responsible. This policy helps pay for client notification costs and legal expenses related to a data breach.

Commercial auto insurance: This policy covers the cost of accidents involving work vehicles. Each state has its own requirements for auto liability insurance.

Are you ready to safeguard your media or advertising business with workers’ compensation insurance? Complete Insureon’s easy online application today to compare quotes from top U.S. insurers. Once you find the right policy, you can begin coverage in less than 24 hours.