{ business solutions } by Missouri Dental Insurance Services


Why You Need Workers’ Compensation Insurance


by LINDSEY KUTSCHER H


ave you ever received a de- manding letter from the state of Missouri requiring you to provide proof of workers’ com-


pensation insurance for your business in the next 10 days or face penalty? It happens; you are not alone.


Aside from being required by Missouri law, there are multiple advantages for a practice owner to purchase workers’ compensation insurance. My goal is to provide a better understanding as to the purpose of work- ers’ compensation coverage and its role in your practice. The reasons outlined in this article are not ranked in order of importance, as value may vary by employer and circum- stance.


ADVANTAGES OF WORKERS’ COMPENSATION COVERAGE


No. 1  To avoid being charged with a Class A misdemeanor and paying a fine of up to $50,000, Chapter 287 RSMo states that employers with five or more employees must carry workers’ compensation insurance. This total number would include you, as the employer, and family members on payroll. However, there are circumstances in which a practice owner may exclude themselves and any family member within the third degree of consanguinity.


For example, counting yourself, there are five workers in your office; therefore, you must have workers’ compensation insurance in place but may exclude yourself, as the owner. While MDIS does not recommend exclud- ing yourself, as you are just as likely as an em- ployee to sustain a work-related injury (and cost savings is minimal), it is an option.


18 focus | SUMMER 2025 | ISSUE 2


No. 2  Providing coverage for employees in the event of a bodily injury, by accident or by disease, is an important benefit an employer can offer by way of workers’ compensation coverage. Four benefits are found within the policy: medical, disability, rehabilitation and death (or survivorship).


Medical benefits will provide payment for necessary and reasonable medical treatment. Despite what you may think, health insur- ance will not cover work-related injuries. Without workers’ compensation insurance, you may be liable for the cost of medical ex- penses incurred by an injured employee—out of your own pocket.


Disability benefits are structured to com- pensate employees for lost wages due to their inability to work with respect to an employment-related illness or injury. After a waiting period of three business days, employees receive a percentage of their pay through each week they are unable to work. There are four types of disability: temporary total, permanent total, temporary partial and permanent partial. In some cases, a disability can result in a lump-sum settlement.


Rehabilitation benefits provide for physical therapy, and in some cases, vocational rehabilitation for a new type of job.


Death or Survivorship benefits can be paid if an employee dies because of a job-related incident. A burial allowance and income benefit to compensate the dependents for the deceased employee’s lost wages are custom- ary as well.


No. 3 Employers liability insurance is another feature of workers’ compensation


coverage. This part is designed to pay dam- ages (other than those outlined in No. 2) re- sulting from a claim or lawsuit if an employer is found legally liable. Minimum limits in the state of Missouri are as follows:


• Bodily injury by accident: $100,000/each accident


• Bodily injury by disease: $500,000/policy limit


• Bodily injury by disease: $100,000/each employee


With a lawsuit against you, if a court judge- ment for damages exceeded any of the limits shown, you may still be liable for the differ- ence. The cost to increase limits for a dental practice is minimal. Instead of opting for the state minimum coverage, consider looking into the cost to raise your limits, for your own financial protection.


No. 4  Fortunately, workers’ compensa- tion rates are affordable for dental practices, unlike labor trades or other professions


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