WORKERS' COMPENSATION INSURANCE IN OKLAHOMA

Interested in learning more about workers? compensation coverage in Oklahoma?

Be aware of the most critical fact: coverage is mandatory. The next most critical? Insurance benefits begin the moment every worker walks onto the job.

This means businesses must have insurance coverage ahead of time, not the day after. Remember, the employer is responsible for obtaining insurance, not the employee.

Workers? compensation insurance exists because American jobs can be dangerous. The U.S. Bureau of Labor Statistics estimates that more than 4.5 million job-related injuries and illnesses occur in private workplaces each year.

Like every state, Oklahoma wants to reduce the number of on-the-job injuries.

One solution is Oklahoma?s state-mandated workers? compensation insurance. Here?s? a brief snapshot:

• Governed by state law, it provides medical, disability, and rehabilitation benefits to workers injured or disabled on the job.
• In the case of accidental death, it grants benefits to the worker?s family.
• It protects employers from liability lawsuits.
• Employers can provide workers? comp in three ways: 1) From a private insurance carrier licensed to do business in Oklahoma 2) from CompSource Oklahoma or 3) by self-insuring or by becoming a member of a group self-insurance association.

THE SMALL PRINT

A small?but noteworthy?group of workers is exempted from the law. This includes:

• Federal employees covered under federal law
• Certain agricultural and domestic workers
• Any employee of a business with five or less employees, all of whom are related by blood or marriage to the employer

For a complete list of exempted employees, please see Oklahoma Workers? Compensation Court

CHOOSING THE RIGHT COVERAGE

If your company is obligated to provide workers? comp insurance, remember to obtain the right coverage before you open for business or hire new employees.

Otherwise, you could be in deep legal trouble.

Bear in mind, though, that under the law, workers receive exactly the same medical and disability benefits (see Oklahoma Workers? Compensation Court) no matter which insurance plan you use: private, state-funded, or a self-insured plan.

Which choice is best for you?

First, Private Insurance. Oklahoma has many private firms that provide workers? compensation coverage. Advantages of the private market are the range of choice, competitive prices and custom-built policies.

Independent carriers can be creative. Although they must provide the basic workers? comp package, they can offer innovative plans, with options such as pay-as-you-go premiums, inventive job safety training, and holistic medical care.

Second, CompSource Oklahoma. This state fund is set up to provide private and state workers? comp at the lowest possible price. It?s a non-profit, self-supporting company that works by selling insurance directly or through independent agents. For small businesses and state agencies, CompSource Oklahoma is often the most cost-effective choice. The downside is that response time to claims may be slower than that of private firms.

Third, Self-Insurance. Proving the financial ability to pay compensation is the test for self-insurance. To be approved, the employer must have a minimum annual payroll of at least $1 million for the past three years, employ at least 100 people, have been in operation for at least five years, and the shareholders? equity must be at least $500.000. The Oklahoma Workers? Compensation Court must approve a business for self-insuring.

Self-insurance also can include becoming a member of a group self-insurance plan. These plans generally focus on minimizing costs and creating a stakeholder mentality among members. The benefit is a sense of group purpose and sense of control.

WHEN THINGS GO WRONG

Bad things can happen when a business refuses to obtain mandatory insurance coverage for workers. ?The employer may be charged with a misdemeanor and subject to a fine?and may even face criminal charges.

The Oklahoma Workers? Compensation Court administers the law, and contested cases are heard in Court. If a worker?s claim is denied or if the worker feels the claim has resulted in unfair dismissal from the job, he/she can represent himself/herself or retain an attorney.? A Court Administer has the authority to approve certain settlements.

Attorney fees are limited to 10 per cent for temporary total disability cases and 20 per cent for all other cases.

Insurance fraud may be reported either to the insurance carrier or to the Workers? Compensation Court.

For more information, please contact Oklahoma Department of Labor

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