In most states, businesses with one or more employees are required to be insured with worker’s compensation, even if your employee is a friend or family member.
This protects both the employer and employee when a work-related accident or illness occurs. Most policies cover a portion of lost wages, employee medical care, and protect employers from litigation. In most cases, coverage may also include rehabilitation expenses, disability benefits even death expenses.
Depending on your state, worker’s compensation laws can prohibit employees from filing personal injury claims against their employers. That protection alone is worth the cost, for any business.
Employee wages, salaries, and your type of business and industry are all considered to determine an employer’s premiums. Businesses with safety records that exceed industry averages can often qualify for special premium discounts due to their above average safety performance. Businesses that institute workplace safety programs can also qualify for discounted worker’s compensation premiums.
As a business owner, worker’s compensation insurance reduces your risk of a crippling financial loss in the case of a serious accident involving one of your employees. Worker’s compensation insurance provides peace of mind for business owners when they need it the most.