As you may know, most states require employers to have workers’ compensation insurance. These insurance policies can help recover most of your employee’s lost wages while they recover from a work-related injury or illness.
It also helps to cover your employee’s medical expenses as it provides their family with death benefits if they, unfortunately, pass away.
What is Workers’ Compensation Insurance?
Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.
Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.
When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.
What is Covered with Workers’ Compensation Insurance?
Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:
- Payment for lost wages
- Vocational rehabilitation
- Permanent disability
- Temporary disability
- Medical costs and treatment
How to Prepare for Employee Claims
Accidents happen. It’s part of life. It doesn’t matter how safe your business is, there’s always the chance an employee will get sick or injured on the job. For this reason, nearly every state requires business owners to have coverage for their employees. Different states, however, have various regulations.
Ensure you have an expert on your team to help understand what your specific business needs are. For example, if your business is in California, you are required to obtain workers’ compensation insurance even if your business is as small as just one employee. In Florida, however, you need this coverage if you have at least four employees.
Signing up for workers’ compensation depends on the location of your business. Typically, states recommend you purchase workers’ compensation insurance through a private insurance company, while others may require you to buy it through a state-run insurance fund.
It’s also important to understand the cost associated with investing in workers’ compensation insurance. The risk associated with your specific business will determine the cost of your insurance payments. This all sounds pricey, but remember: the costs associated with not having workers’ compensation insurance might be the motivation you need to start considering your options.
Without workers’ compensation insurance, you put yourself and your business at risk of fines, and could even face potential jail time for not complying with regulations. If an employee runs into a problem that would have been covered by workers’ compensation insurance, you may be responsible for covering their expenses, and you may also open yourself up to litigation.
What You Need to Know About Workers’ Compensation as an Independent Contractor
Every contractor needs general liability insurance. While the law does not require it, it is considered best practice to ensure against the kinds of injuries and lawsuits general liability is targeted to.
Large contractors may own commercial buildings that require property insurance, where smaller contractors or those with a specialty may need different coverage.
At Competitive Edge, we don’t claim to know your needs until we talk to you. What’s right for one company may not be a choice that meets your needs. Even if you have suffered a shock loss, large claim, or lawsuit, and find that your options have narrowed, we can work with you.
The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always. Contact Competitive Edge Insurance today for more information about high-risk coverage today!