Insurance - Workers Comp & Health Category Guide

Workers' Compensation Insurance

Workers' compensation provides benefits to employees injured on the job, covering medical expenses, lost wages, and rehabilitation. While agricultural exemptions exist in some states, most dairies with employees need workers' comp coverage—and even where not required, it's essential protection for both you and your workers.

Understanding Farm Workers' Comp

• Legal requirements: Vary by state—some exempt small farms, others require coverage for all employers
• Benefits provided: Medical care, disability payments, rehabilitation, death benefits
• No-fault system: Employees receive benefits regardless of fault; in return, they generally can't sue employers
• Premium basis: Based on payroll and job classifications, modified by safety record

Dairy-Specific Considerations

Agriculture has higher injury rates than most industries. Common dairy injuries include animal handling incidents, falls, machinery accidents, and repetitive strain injuries. Premium rates reflect this risk, but good safety programs can reduce costs through experience rating.

Health Insurance Options

Group Health Insurance

Traditional group plans provide comprehensive coverage but require employer premium contributions. Small groups (under 50 employees) face different rules than large groups.

SHOP Marketplace

The Small Business Health Options Program offers ACA-compliant plans for small employers. Tax credits may be available for very small businesses.

Health Reimbursement Arrangements (HRA)

Qualified Small Employer HRAs (QSEHRA) and Individual Coverage HRAs (ICHRA) let employers reimburse employees for individual health insurance and medical expenses.

Association Health Plans

Farm Bureau and other associations offer health insurance options in some states, potentially with better rates than individual market plans.

Employer Responsibilities

• Maintain required workers' comp coverage
• Report injuries promptly
• Provide safety training and equipment
• Comply with OSHA requirements
• Understand ACA requirements if offering health coverage

Cost Considerations

Workers' comp premiums for dairy operations typically run $5-15 per $100 of payroll, depending on state, job classifications, and experience rating. Health insurance costs vary widely—group plans may run $500-1,500 per employee monthly; HRA reimbursement amounts are employer's choice. Consider total compensation when recruiting and retaining employees.