- Workers' compensation insurance
Workers’ compensation insurance covers medical costs and lost wages for work-related injuries and illnesses. This policy is required in almost every state for businesses that have employees.
Workers’ comp protects your financial experts
If an auditor suffers a slip-and-fall injury in the office, or your top tax preparer develops carpal tunnel, medical bills can pile up quickly. Workers’ compensation can pay for an injured employee’s medical expenses and partial missed wages. It can also protect the employer if an employee files a lawsuit related to workplace negligence.
What coverage can workers’ comp insurance provide for finance and accounting businesses?
Workers’ compensation insurance provides coverage in three primary areas:
- Employee injury and illness expenses
- Employee injury lawsuits
- Compliance with state laws
Employee injury and illness expenses
Workers’ compensation can help pay for an injured employee’s:
- Immediate medical costs, including ambulance ride and emergency room expenses
- Ongoing medical costs, such as medications and physical rehabilitation
- Partial lost wages while the employee is unable to work
- Death benefits, including funeral expenses, in fatal incidents
Employee injury lawsuits
Employer’s liability insurance, which is typically included in a workers’ comp policy, provides protection when an employee decides to sue the owner of a tax preparation company, financial advice firm, or other company. Even if the employer is not at fault for the injury, an accusation of negligence could result in a costly legal battle.
Employer’s liability insurance can help cover:
- Attorney’s fees
- Court costs
- Settlements or judgments
- Witness fees
How much does workers' compensation cost for finance and accounting businesses?
The amount you pay for workers’ compensation is a specific rate for every $100 of your payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and payroll (per $100).
The formula is:
Classification rate x Experience modification rate x (Payroll / 100) = Premium
State laws set workers’ comp requirements for finance and accounting businesses
Each state has its own unique set of laws for workers’ compensation requirements. Finance and accounting businesses in New York, for example, are required to carry workers’ compensation insurance for every employee, including part-time workers. Alabama businesses, on the other hand, are only required to carry workers’ compensation when they have five or more employees.
While self-employed or independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance, you may purchase workers’ comp to protect your accounting firm or other finance business.
Find workers' comp requirements in your state
Monopolistic state funds
In certain states, finance and accounting businesses must purchase workers’ compensation insurance through a monopolistic state fund. Those states are:
If you purchase workers’ comp through a monopolistic state fund, it may not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.
Lower workers’ comp costs with risk management
Employees who only work in offices are still at risk of injury. In any workplace, an employee could slip on a wet floor or trip over equipment. An on-the-job injury can lead to an insurance claim – and a rise in your premium.
Whether you’re the owner of an accounting firm or a bookkeeping business, you can manage your risks by providing safety training and developing a safe work environment. Taking these steps could reduce workplace injuries along with insurance rates.
Other important insurance policies to consider
Workers’ compensation insurance offers protection for your employees and to some extent your business, but it doesn’t provide coverage for all risks. Finance and accounting business owners should also consider:
General liability insurance: This policy covers common risks in the finance industry, such as customer slip-and-fall injuries and damage to client property.
Cyber liability insurance: This policy helps businesses survive data breaches and cyberattacks by paying for recovery expenses and other associated costs.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your accounting firm, tax preparation business, or other enterprise with workers’ comp insurance? Complete Insureon’s easy online application to compare quotes from top U.S. carriers. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.