One of the main things to keep in mind when starting a business is workers’ insurance. This is insurance that helps protect a business and an employee in case the employee gets injured or falls ill while on the job. Workers’ insurance is also popularly known as workers’ compensation insurance or simply worker’s compensation. Let’s take a look at some points that every business owner should know about workers’ insurance.
Span of coverage If a worker falls ill or gets injured on the job, workers’ insurance covers their medical expenses and prescriptions. Additionally, some workers’ insurance policies even compensate your employees for wages lost while they are recovering. So, be sure to research thoroughly before deciding on the policy that is best suited to your employees and their line of work.
Mandate by state Every business owner should be aware that workers’ insurance is mandatory in all states. However, the rules and policies for workers’ compensation may differ. For instance, in Texas, not every business is required to have workers’ insurance. So, it is advisable that you check your state’s individual regulations before taking a policy. This is especially important if you have employees and businesses across several states. The US Department of Labor’s website has complete information on the workers’ insurance. It is advisable to read all the details to avoid incurring hefty fines.
Premiums may vary by state and nature of work Apart from legislation on policies, premiums too can vary by state and the quality of work. Some states have higher premiums due to their high cost of living standards. Similarly, the type of work risk involved in your business will determine the premium. For instance, a job in a factory may pose a higher threat of accidents to an employee and thus cause a more substantial premium for the business owner. On the other hand, a job as a secretary in an office is a relatively low-risk job and will have a much lower premium.
Claims are not always significant accidents An insurance claim is not still as major as a severed finger or multiple fractures. Most applications involve more straightforward incidents such as twisted ankles or even minor slips and injuries. This is good news for a business owner for the less serious the nature of the injury, the less the premium that needs to get paid. Do bear in mind that less severe injuries should not lead to complacency on getting the right kind of workers compensation insurance for your business. A risk manager can help evaluate the best plan for your needs.
Protection from lawsuits Having workers’ insurance in place helps protect your firm from lawsuits in the event of an untoward incident. This is because employees need to waive their right to a lawsuit to be able to qualify for the benefits offered in insurance compensation. While workers’ insurance is not a complete guarantee against lawsuits, it does save your firm from considerable financial damage that may be incurred in its absence.
