Worker’s compensation is absolutely essential for all businesses which hire employees to work for them. Yes! you read that correctly. There is no going around this insurance and no way of covering it under anything else. Most states require you to have worker’s compensation in order to run your business in them – legally, of course.
What does Worker’s compensation cover?
Workers’ compensation insurance provides benefits to employees who get injured or sick from a work-related cause. It also includes disability benefits, missed wage replacement and death benefits.
This insurance also reduces your liability for work-related injuries and illnesses. Without coverage, your employees can sue you for a work-related injury or illness to help pay for their medical costs or lost wages. To be more specific, your worker’s compensation covers medical bills, lost wages, ongoing care costs, funeral expenses, etc. of your workers.
Now you know the vast areas that are covered by your worker’s compensation and you understand how important it is, we’ll move onto the specifics.
You need a worker’s compensation if:
Working with different organizations
In order to expand your business, talents, and experience, you might need to reach out to organizations to work with. You see, when it comes to dealings in the big leagues, no company or investor would want to invest in a business that isn’t backed by insurance; worker’s compensation to be more specific. Why? Simply because it makes no sense for them to take on the risk of using an uninsured contractor/ second party because if you’re injured, they’ll have to pay out of pocket and can also be sued.
Plus, a COI is usually a necessity to have when signing a deal.
Work related injuries
Some businesses are prone to have more fatalities than the others. For instance, if you’re in the construction business, your employees are more likely to suffer through accidents than if they’re working in a small pastry shop. You see, all work environments can have accidents. So, if you are injured while performing your work, you’ll be covered by your own workers’ comp compensation policy. Plus, your worker’s would be covered in this too.
Owning a small business
Small business owners usually think that the idea and necessity of a workers’ compensation policy does not apply to them. That is why they don’t usually invest in it. This notion is most certainly – wrong. You don’t know how and when accidents occur. They just do! Better be safe than sorry.
Do sole business owners need a workers’ compensation?
We get this question quite a lot and the answer is – it depends. In most cases, you won’t be required to have this type of insurance. However, in some cases, you may be required to complete a sole proprietor workers’ compensation exemption form, get it notarized, and pay a fee – when dealing with other businesses and clients. Plus, it also varies from state to state.
At Paradiso insurance, we care about the sustainability, longevity, and the success of your business. our agents make sure that you’re covered on all basis – legal or otherwise. this is why we recommend that you look into our workers’ compensation policy and plans to secure yourself, your staff, and your business through the best of means.
