West Virginia workers' compensation insurance

West Virginia imposes stringent workers’ compensation insurance rules on its employers. All businesses with employees are required to carry workers’ compensation insurance.

However, there are a few exemptions to the West Virginia workers’ compensation requirements. You don’t need to carry workers’ compensation for:

• Fewer than three employees who work temporary jobs that last no more than 10 days per quarter
• Five or fewer agricultural employees
• Employees who are domestic servants
• Employees who work for a church
• Professional sports athletes
• Temporary employees of the state
• Volunteers for emergency services
• Longshore and harbor workers

Sole proprietors and independent contractors are not required to carry workers' compensation business insurance for themselves in West Virginia.

However, some opt to purchase coverage to protect against the potentially high cost of a work-related injury. Health insurance providers can deny injury claims that are related to employment.

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' comp premiums:

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, West Virginia employers can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is a cheap option in some states, including West Virginia. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

Workers’ compensation in West Virginia is regulated by the West Virginia Offices of the Insurance Commissioner.

When an employee is injured on the job, this policy covers the cost of medical care and provides lost wage benefits. The employer's liability insurance included in most policies protects employers from lawsuits related to workplace injuries.

Workers' compensation benefits for injured workers in West Virginia include:

• Medical benefits covering the cost of medical treatment related to the injury
• Permanent total disability benefits
• Permanent partial disability benefits
• Temporary total disability benefits
• Temporary partial disability benefits
• Vocational rehabilitation
• Death benefits for fatal incidents

If a business fails to provide records of information about workers’ compensation insurance coverage in West Virginia, it can be fined $500 or more on the first offense and up to $25,000 for subsequent offenses.

A repeat offender could be subject to imprisonment for up to two years.

If an employer doesn’t pay workers’ compensation contributions, there will be a late penalty of 10% of the computed tax, plus interest. This fee will be between $50 and $500. In addition, a stop-work order could be issued, which prevents the employer from continuing to do business.

If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to surviving dependents.

Death benefits are awarded to survivors based on their relationship to the deceased worker, including:

• The worker’s surviving spouse
• The worker’s children under age 18 (or under age 25 if the child is a full-time student)
• The worker’s disabled children of any age

If there are no survivors that meet those criteria, the benefits would be awarded to the worker’s surviving parents if they relied on the deceased worker for financial support. Finally, if there are no surviving parents, benefits could go to dependent grandchildren and disabled siblings. If a deceased worker has no dependents, death benefits are only to pay for medical bills and funeral expenses.

The surviving dependents are entitled to death benefits that are two-thirds of the deceased worker’s average weekly earnings at the time of the injury. Dependents share that benefit, and the proportions of the shared benefits are determined based on the situation.

Funeral costs can be covered up to $7,000.

A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This benefits both the claimant and the employer. A West Virginia workers’ compensation settlement is usually given in a lump sum.

A settlement in a workers’ compensation claim is a full and final resolution. When a settlement agreement is reached, the worker can no longer bring a claim against the employer or insurer based on that injury. Most injured employees will wait to settle a claim until they’ve reached maximum medical improvement, which means the condition is stable and unlikely to become worse.

The amount of a settlement will be based on the severity and nature of the injury.

The State of West Virginia requires workers’ compensation claims to be filed within six months from the date of the injury. It can be within three years from the date of diagnosis of an occupational disease or illness, or three years from the employee's last exposure to the hazardous condition that caused the illness.

If an employee misses that six-month deadline, they might forfeit their right to receive benefits.

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options.

Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.