How Workers’ Compensation Insurance Protects Small Businesses
Nearly every business faces at least some risk of on-the-job accidents, whether it be carpal tunnel injuries or equipment malfunctions that cause loss of limb or even death. If one of your employees is hurt while working for your business, you could be held responsible for paying related medical expenses as well as the wages he or she would have earned during his or her recovery period.
Workers’ compensation laws are regulated at the state level. At present, most states require businesses to carry some kind of Workers’ Compensation Insurance. Many mandate that all companies with W2 employees secure such coverage, and some require coverage for all businesses, regardless of size or worker classification.
The small-business insurance experts at insureon are familiar with workers’ compensation guidelines around the country and how they apply to various industries. Discover how to protect your business from costly workers’ compensation claims by contacting one of our representatives today.
Workers’ Compensation Insurance Explained
Commonly referred to as "workman’s comp" or "workers’ liability insurance," Workers’ Compensation Insurance is designed to protect your business by paying the costs associated with workplace illness and injury. In most cases, those include medical bills and lost wages – that is, the wages an injured employee would have earned had he or she been able to work during his or her recovery period.
Without insurance in place, those costs can be prohibitive: in addition to compensating the injured employee, remember, a business often has to pay wages to a replacement employee to perform the duties the injured person is no longer able to carry out.
Most workers’ compensation policies also include something called Employers’ Liability Insurance, which helps pay for your legal costs in the event that you have to defend yourself in court against an employee’s claim of illness or injury.
Those costs, too, are often steep: even if the court finds that your business is not responsible for the illness or injury in question, you will have to pay for your legal defense, which might include attorneys’ fees, court costs, docket costs, witness fees, and more.
Workers’ compensation policies typically offer several coverage options, which might include…
- Coverage for employees working in other states beyond your normal range of operations.
- Coverage for certain types of injuries and illnesses for which your state may or may not mandate coverage.
- Coverage to support the dependents of any employees who suffer a fatal on-the-job injury, as well as coverage for funeral costs.
- Percentages of reimbursement for lost wages.
- Various liability limits.
To determine which types and what amount of Workers’ Compensation Insurance will provide adequate coverage for your business, complete insureon’s no-hassle online application process.
How insureon Makes Buying Workers’ Compensation Easier
Secure the Coverage You Need Fast. Our expert agents and quick online application process help you get the coverage you need lickety-split.
Choose from Top Brands. When you apply online, you ll receive quotes from some of the most respected insurance companies in the country.
Get an Expert s Opinion. Our agents specialize in their industry, meaning that you ll work with someone who understands your business and its insurance needs.
Receive a Tailored Quote. Rather than providing a generic insurance policy, we offer you coverage that s custom-fit to the needs of your business.
Find Out Requirements in Your State. Check out our state-by-state guide to Workers' Compensation requirements to determine how much coverage you need based on where you operate.
KEY DETAILS ABOUT YOUR WORKERS’ COMPENSATION INSURANCE
We can help you find a workers’ compensation policy designed to adhere to your state’s requirements and work within the structure of a startup or small business. As you consider your workers’ compensation options, keep the following considerations in mind.
Know Your State’s WC Laws.
Most states require the vast majority of businesses to purchase Workers’ Compensation Insurance. A few sponsor insurance “pools” from which companies can purchase policies, but it’s more common that states require businesses to purchase their own coverage. No matter what the laws in your state are, though, workers’ comp coverage is a prudent investment, given the high potential costs of work-related injuries. If you aren’t sure what your state requires, ask one of our agents.
Consider Saving Money By Excluding Yourself from Coverage.
Some states allow corporations to exclude their owners, partners, principals, and / or officers from coverage, which can cut the cost of premiums. Conversely, sole proprietors may be exempt from state laws mandating coverage, but may elect to cover themselves anyway to ensure that they have income if they cannot work. If you’re unsure about your state’s laws or need help deciding the best approach for your company, our workman’s comp experts can help.
BUSINESS PROTECTION TIPS
Workers’ Compensation Insurance can prevent you from spending your money on costly employee claims, but it is not the only way a business should protect itself from illness and injury. To minimize the likelihood that any of your employees will be hurt on the job, implement these basic business protection strategies.
Conduct regular safety training for employees.
The best way to avoid a claim is to avoid injuries in the first place. Be sure to instruct employees in the proper use of all equipment and materials, as well as in proper lifting and other injury-prevention techniques.
Provide appropriate safety or ergonomic gear.
Whether your business involves keyboard time or heavy lifting, the right equipment can help prevent injury. Invest in appropriate safety or ergonomic equipment, and instruct employees in proper and consistent use.
Keep a clean and safe workplace.
Regularly review your workplace for hazards, such as slippery floors or objects that could fall or be tripped over. Ensure that necessary repairs are made quickly and that warning signs and / or barriers are used to restrict access to high-risk areas.