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Workers Comp Insurance

One of your responsibilities as an Oregon employer is to carry workers compensation insurance. Oregon has a compulsory law which requires employers to carry workers compensation insurance which provides liability for accidental bodily injury or disease arising out of an employee’s employment regardless of who is at fault for the accident.

Workers compensation covers the following benefits:


  • Medical
  • Disability Income
  • Death
  • Rehabilitation
  • Disability Income
  • Death

There is no dollar limit or time limit on these benefit payments. To lower claim costs, protect your employees, and maximize safety in the work place ask yourself these vital risk management questions:


  • Do you conduct periodic surveys of your premises?
  • Do you conduct periodic surveys of equipment?
  • Do you conduct periodic surveys of operations?
  • Do you analyze each job to find inherent hazards?
  • If you discover hazards, do you follow up with immediate corrective action?
  • Do you monitor such action to make sure it is implemented and effective?
  • Do you take the time to train each of your employees to perform tasks safely?
  • Do more experienced employees receive training to correct bad habits that have developed over time?
  • Do all employees understand that safety is an important part of their jobs?
1. What does workers’ compensation cover?

Benefits paid to employees generally include:

  • Unlimited reimbursement of medical expenses
  • A portion of lost wages
  • Some vocational rehabilitation
  • A survivors death benefits paid to the employer generally include:
  • Responses to lawsuits brought by injured employees or their dependents for grossly negligent acts by the employer

2. How does workers’ compensation work?

When a worker suffers an injury, even a minor one, it is immediately reported to the workers’ compensation insurance carrier. The employee seeks necessary medical attention, and the insurance company pays the bills. If the employee misses work because of the injury, the insurance company pays the employee limited benefits for the lost time. If the employee is not able to return to the job due to a permanent injury, the insurer pays to re-train the employee for another line of work. If the employee dies, the insurer pays a death benefit to the employee’s family.


3. What affects my Workers compensation rates?

  1. Size of payroll: Workers’ compensation premiums are based directly on the amount of your payroll. The higher your payroll, the more cost you have for your workers’ compensation premium.
  2. Job classifications: The cost of workers’ compensation insurance also varies widely depending on the work function of an employee. In general, a premium for an employee who is a hot tar roofer is much higher than a premium for a clerical worker. Employers must accurately report payroll by classification of work performed.