Workers Compensation Coverage
Workers compensation coverage is a unique type of protection for your business. In the case that someone is injured on the job, they are going to seek workers compensation to help them get by as they are getting well. When an employee files for workers compensation, it is up to your business to make sure that it is paid. If you don't have this type of protection against employee accidents, then you could be sued for the damages.
It is unfortunate, however, that the cost of workers compensation has to be such an incredible concern to so many businesses. Most states, however, do require it so that workers can be compensated in the case they are injured or made ill on the job. It does not matter if a business is small or larger, if there are employees the business needs to have this form of protection.
Workers Compensation Laws
Before workers compensation existed, employees would have to take legal action against their employers in order to be compensated for injuries or illness caused on the job. But today, the laws that are in place cover a wide range of areas to ensure that employees and their families are compensated accordingly. For instance, a family can be given death benefits if a worker is killed on the job. Lost wages and medical expenses are also payable forms of compensation, but it's important to know what isn't covered by this kind of insurance.
Failure to carry workers compensation coverage means that the employer is vulnerable to having to pay these costs out of pocket and may also have to pay penalties to the state for not carrying this protection. The penalties are meant to deter employers from failing to have the coverage because an employee should not have to go through the legal system in order to receive their compensation. This can take longer than it should. Because this takes longer than it should, it could be very likely that the employer would have to pay more than if the employer simply had workers compensation coverage.
And as you can see, workers compensation is regulated by the individual states. The federal government does not have a hand in regulating this protection. Most states also work with private insurance, while some have state funds, but private does give employers within those states more options.
Do You Need Protection?
As an employer that most likely does business in a state that requires workers compensation coverage, you do need it. However, not every business type is required to purchase protection. For instance, sole proprietorships and partnerships are not required, but if you have employees it may be a good idea. Even if you do not believe tat an accident could occur, the unexpected can always happen. If you are a sole proprietor or partner in a business, you may want to cover yourself although it is not required.
Here is a scenario to consider: If you are a sole proprietor and you hire someone to come in and install a new phone line into your business, that person could make a claim against you if he or she is hurt and they are not already covered under workers compensation. Anyone you hire to work for your business could file a workers compensation claim if they are injured while doing work for you.
So if you are not already covered, you need to obtain the coverage needed so that you can protect yourself financially. Workers compensation coverage is affordable. It does not have to break the bank. Plus, you will be complying with the law if you live in a state that requires your business type to carry it.