Workers’ Compensation in Alabama

In Alabama’s Workers’ Compensation policy, employees are given an assurance of “benefit certain” for any workplace injury or occupational disease paid by the employers. At the same time, the law gives the employers an “exclusive remedy” so when the employee gets injured, the medical expenses will be covered by the state’s work injury compensation. As a result, there will be limited coverage for the employer’s liability.

Alabama’s Workers’ Compensation Law

The heart of Alabama Department of Labor is to work hand in hand with the employers and employees. So, they created the Workers’ Compensation Division to effectively lay out the provisions of Alabama Workers’ Compensation Law.

Workers’ Comp is mandated by the state law of Alabama, but there are certain types of job that may be excluded from the coverage. Alabama Workers’ Compensation Law does require operating businesses with less than five employees, full-time or part-time, to carry a workers’ comp benefits for themselves. Employers who hire workers for domestic, farm or casual labors that makes up about less than 2,000 of the state’s population do not need to provide workmen’s compensation as well.

Even though some employers are not mandated to provide liability coverage for themselves, they are not exempted from securing a workers compensation insurance for their employees. Supposing that the employers decide not to buy an insurance, Alabama Department of Labor says they can choose to be covered by the provisions of the Alabama Workers’ Compensation Law itself.

If the employer would choose to buy workers compensation insurance for their business’ protection, here are the five means to purchase:
• from a state approved workers comp insurance company
• from the Assigned Risk Pool when insurance carriers refuse to write an insurance policy for you
• through a group self-insurance fund
• through individual self-insurance
• through an approved alternative workers’ compensation policy from an authorized insurance carrier

SynchronoSure®’s Workers’ Compensation for Alabama Workers

SynchronoSure® is an advanced underwriting business that specializes in property and casualty insurance for small sized and emerging businesses in the U.S., binding business in minutes.

SynchronoSure® offers a Workers’ Compensation that pays for the medical care for workers who suffer from on-the-job injuries or illnesses and covers financial loss such as lost wages when the employee cannot work due to injury or sickness. This product also protects the business’ assets from lawsuits.
• Minimum Policy Premium $1,000
• Maximum unmodified manual premium of $35,000
• Maximum experience modifier of 1.35
• Installment Options of Annual or Full Payment Due at Inception
• Employers Liability with Limits up to $1m/$1m/$1m

This insurance does not charge Assigned Risk Adjustment Program (ARAP) surcharge to over 1,000 payroll classifications.

Employer’s Penalty for Failure to Pay for Workers’ Compensation

An employer will be charged of penalties should he or she fails to secure a payment for the workers compensation coverage otherwise he or she will be guilty of misdemeanor, a “lesser” criminal offense but can be punishable by a community service, fine or worst imprisonment. As per the Alabama Workers’ Compensation Law, the monetary penalty will not be less than $100 nor more than $1,000. You may check the full Alabama Workers’ Compensation Act here.

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