Like any other insurance, you may have several questions about Workers' compensation and how it works. It's a simple concept that offers a multitude of benefits that are meant to help an injured worker stay on track. The following questions are quite common and the answers will give you peace of mind.
Workers' compensation pays for the medical expenses and lost wages of an employee who was injured on the job. It may also cover any training that may be needed if an employee needs to change jobs.
Workers' compensation insurance is mandatory in most states. There are certain exceptions to this rule, however. It's important to work with an insurance agent who understands Workers' comp and its alternatives.
You should have a good workers' comp policy in place before they hire the minimum number of employees required. This will ensure that you are protected from any unexpected claims if your employee is injured on the job.
There are differences between being an employee and working as an independent contractor. The definition of an employee is different from state to state. Working with an insurance agent can help you make the right determination.
In most cases, a workers' compensation policy will cover independent contractors even if it isn't necessary. If the hiring company controls any aspect of the independent contractor's job, like the materials used or hours worked, this technically qualifies them as an employee.
Workers' compensation insurance can be purchased through state-run organizations or through private insurance firms. Both can make sure you have the right amount of coverage you need for your business.
Four primary factors go into determining how much a workers' compensation policy will cost. They include your location, payroll, class code, and claims history, if there is any. The cost can range from a few hundred to a few thousand dollars each month.
Many states offer discounts to companies that offer safety programs, formal or professional programs, or payment programs that work together to lower the cost of your workers' compensation policy.
The primary benefits include paying a percentage of the employee's lost wages as well as their medical benefits. Employees may also receive long-term disability or compensation for training so they can learn a new skill. If the employee dies, his or her family will receive a death benefit.
Workers' compensation only covers employees who are injured on the job. General liability covers injuries to a customer or other visitor to the business.
Sole proprietors aren't required to carry Workers' compensation benefits on themselves, but it's a good idea to have some health insurance coverage.
To get the right amount of workers' compensation insurance, you need to know what your state requires. The next step is finding the right insurance company that handles workers' comp policies. They can customize your policy to meet your needs.