The average claim settlement rate for workers comp insurance is 99.2%. This proves the importance of these insurance policies. It also proves that is a perfect investment for businesses. Is yours protected?
In some states, you are required to carry workers comp coverage. Your business may not need this coverage in every state.
However, if you have employees, you can never be sure of which state will require it. To play it safe, always have the appropriate coverage. It could save your business from bankruptcy.
Keep reading to learn everything that you need to know about workers comp.
From Solopreneur to Employer: Do You Need Workers Comp Insurance?
It’s a common question for business owners: “Do I have to offer workman’s comp benefits?” The answer, in most cases, is yes. It depends on a few factors, including the size of your business and the type of work your employees perform.
If you have full-time employees, you may be required to provide workers’ compensation coverage under state law. Even if you are not required to offer coverage, it may be a good idea to do so to attract and retain good employees.
Workers’ compensation coverage can protect your business from lawsuits if an employee is injured on the job. Here are some factors to think about when choosing the best comp coverage for your business:
Don’t Assume Your State Doesn’t Require It
You might not think your business needs workers’ compensation coverage because your state doesn’t require it. But that doesn’t mean you don’t need it.
If one of your employees is injured on the job, workers’ compensation will help pay their medical bills and replace some of their lost wages.
Know Your Employees’ Classifications
If you are an employer, you should check with your state’s workers’ compensation board to find out if you are required to provide coverage for your employees.
Even if coverage is not required, it may be a good idea to provide it anyway to protect your business from liability in the event that an employee is injured or becomes ill while on the job.
Understand Your Business’ Hierarchy
Depending on the structure of your business, you may need to obtain workers’ compensation insurance. If your business is a corporation, you may not be required to have this coverage, but it’s still a good idea.
Speak with an insurance agent to determine if workers’ compensation insurance is right for your business. You can find here everything you need to know about workers’ compensation insurance.
Do Your Research on Rates
You should always do your research when it comes to finding the best rates for workers’ compensation coverage for your business.
You want to make sure you are getting the best possible deal. Find out what other businesses in your industry are paying for their coverage, and get quotes from a few different insurance companies to compare rates.
Get Workers Comp Coverage for Your Business Today
If you have even one employee working for you, then you are required to have workers comp coverage. Many small business owners believe that their business is too small to need small business insurance, but even one employee can be enough to trigger the requirement. Workers comp coverage can help you avoid lawsuits and protect your business from financial liability.
Our knowledge extends to other areas as well. Check out some of our other articles for more insight and guidance.