Workers’ Compensation Insurance Policy & Law in Utah
How Is Workers’ Compensation Insurance Defined in Utah?
The state of Utah defines workers’ compensation insurance as a “no-fault” insurance system that provides medical and disability benefits for employees who suffer an on-the-job injury or illness. “No-fault” means that benefits are provided regardless of who is responsible for the workplace injury or illness, with the exception of intentional acts.
What Are the Laws Regarding Workers’ Compensation Coverage in Utah?
In Utah, generally every employer is required to provide workers’ compensation coverage for all of its employees. There are a few exceptions to this, as outlined by Utah state law. These exceptions include:
- Business owners with zero employees, like sole proprietors
- Members of limited liability companies (LLCs)
- Some agricultural employees
- Casual or domestic employees
- Some real estate and insurance brokers
Despite not being legally required by the state to provide workers’ comp coverage, those listed above as exceptions may still choose to get workers’ compensation insurance for themselves if they wish. Many businesses, regardless of their status under the workers’ comp law, benefit greatly from having coverage.
What Does Workers’ Compensation Insurance Cover in Utah?
In the event of a workplace accident, Utah workers’ comp insurance provides medical, indemnity, and death benefits.
In Utah, medical benefits are considered any expenses that are “reasonable and necessary” to treat injuries or illnesses that an employee experienced as a result of their work, including but not limited to:
- Doctor bills
- Hospital bills
- Medical/prosthetic devices
- Reimbursement for travel expenses to receive medical treatment
- Lifetime medical benefits if needed
Indemnity benefits are offered when employees have to miss work due to their injury or illness and in the event that the employee’s injury or illness results in lost earning potential. Indemnity benefits, also known as lost wage benefits, are paid to the employee to help cover the costs associated with lost income. These payments are typically a portion of the employee’s average weekly wage.
Death benefits in Utah are offered in the event that an employee passes away due to their work-related injury or illness. Death benefits usually include a certain amount for funeral and burial expenses as well as weekly compensation for the deceased worker’s dependents.
What Are the Penalties in Utah for Not Having Workers’ Comp Insurance Coverage?
Utah takes workers’ compensation coverage seriously. That said, there are stiff penalties for businesses that violate the Utah state workers’ comp law. These penalties include:
- $1,000 fine
- Legal injunction against doing business in Utah
- Loss of protection against being held liable for workers’ comp benefits
Learn more about workers’ comp coverage requirements in states other than Utah here.
What Types of Injuries Are Covered by Utah Workers’ Comp?
Utah state law outlines specifically which types of injuries are covered by workers’ comp insurance in the state. The Utah state website describes certain injuries that are typically not covered, including:
- Intentional self-inflicted injuries
- Injuries from alcohol or drug abuse
In addition, disability compensation can be reduced by 15% if it’s determined that the injury or illness was caused by willful failure to use safety devices or follow safety rules.
For more information about the workers’ comp claim process, visit our learning center.
What Are Workers’ Comp Death Benefits in Utah?
Death benefits in Utah include compensation for funeral and burial expenses and weekly compensation for the deceased worker’s beneficiaries/dependents. The state defines dependents as:
- Children under 18 years old
- Children over 18 years old who are mentally or physically incapacitated
- Other family member that is dependent on the worker at the time of their passing
How Do Workers’ Comp Settlements Work in Utah?
Like other states, workers’ comp settlements in Utah are mutually beneficial agreements made between the injured worker, their employer, and the insurance company that close workers’ comp claims completely. Settlements usually result in the employee being paid an agreed-upon amount of compensation (via structured monthly payments or one lump sum). In exchange, the worker agrees not to pursue additional benefits or civil litigation in relation to the claim in the future, and the claim is closed permanently.
In Utah, the state’s Labor Commission must approve all settlement agreements. In the state there are generally two kinds of settlements available — compromise settlements and commutation settlements. Compromise settlements are for when parties disagree on whether or not the worker deserves to receive workers’ comp benefits. Commutation settlements are for when everyone agrees that the worker should get workers’ comp benefits.
What Is the Statute of Limitations Regarding Workers’ Comp in Utah?
In Utah, employees must file their workers’ comp claim within one year from the date of the injury or discovery of the illness. Employees must notify their employer of their injury or illness within 180 days; otherwise, they risk being disqualified from receiving benefits.
How Much Does Workers’ Compensation Insurance Cost in Utah?
As in other states, Utah’s Labor Commission outlines that the cost of workers’ comp insurance premiums varies depending on a variety of circumstances. Although the state’s Department of Insurance establishes basic premium rates, private insurers are allowed to set their own rates and modify rates to account for occupational risks and each employer’s claims history for workplace injuries or illnesses. For example, if your industry is considered low-risk, like accounting, your rates might be lower than those of businesses that are considered high-risk, like oil and gas.
If you are a Utah business owner looking for coverage, the best way to tell how much you’ll pay is to compare quotes from multiple companies.
Many factors unique to your business will be utilized to determine your exact insurance premiums.
Some of these factors include:
- The location of your business
- The size of your business and the number of employees
- The industry in which your business operates
For business owners hoping to lower their premiums, there are preventative steps that might help. Insurance providers often consider how seriously businesses take workplace safety when calculating workers’ comp premium rates. This means that taking simple steps such as enacting employee training sessions, following industry best practices, and creating safety protocols could potentially help lower your insurance premiums.
How Do I Get Workers’ Comp for My Utah Business?
Utah business owners seeking workers’ comp coverage can purchase a policy through any commercial insurance company, agent, or broker that is licensed to operate in the state.
Utah businesses can also opt to self-insure if they meet certain financial requirements. Self-insurance requires the business to be held financially responsible for the cost of all claims and related expenses in the event of a claim. With self-insurance, businesses must pay out of pocket without the assistance of insurance. This is not an ideal choice for most businesses, as it can be extremely costly in the event of an incident.
Where Can I Get Workers’ Compensation For My Utah Business?
We offer workers’ compensation to businesses no matter where you are in Utah. If you are located in the Rocky Mountains, Basin and Ridge, or Colorado Plateau, we’ll help you protect your Utah employees.
If you need workers’ comp coverage for your Utah business, you can purchase a policy through any private insurance company, agent, or broker that is licensed to operate in the state. So even if you aren’t in any of the following cities, know that we can still help you:
- Salt Lake City
Luckily, your Utah-based business can get workers’ comp insurance coverage easier than ever before when you partner with the right private insurance provider. Cerity is home to a faster, more affordable way to get workers’ comp. We help Utah business owners just like you get insurance premium quotes fast — without phone calls or paperwork. Using proprietary tools and modern technology, we provide business owners with quick quotes and instant policies.
Visit our free online quote tool and begin protecting your Utah business today.