What is workers’ compensation?
Workers compensation is a form of insurance given to employees of any business enterprise in case of death, ailments, or accidents. Workers compensation should be given to the employees whether at fault or not.
The main difference between a severe lawsuit and a standard insurance pay-out is the workers’ comp insurance. Workers’ compensation protects your employees in case of injuries in the work premises by giving them insurance payouts. In this way, workers’ comp helps protect your business.
Workers comp insurance policies come with many advantages for your business. One of the benefits is that it prevents a third party from using your company in case one of your employees gets injured. The Insurance Information Institute gives an example of such a scenario: If one of your employees is hurt by one of your office equipment and sues the equipment manufacturer, the comp policies will prevent the manufacturer from making your business liable for the accident.
If things get worse and you need to file a case, you can always approach a workers compensation attorney in Cumming GA.
How it works and requirements needed
Various states require companies to have workers’ insurance policy depending on your area of specialization. Some of the industries that are required to have the workers’ comp are businesses dealing with construction. Amid these requirements, Insureon, a small insurance business conducted a study on the kinds of insurance policies small companies enroll. The study showed that only 17% of the small enterprises interviewed had the workers’ comp insurance.
The president of Insureon Jeff Somers stated that one of the reasons as to why some of the businesses did not have the insurance policy is because most of the organizations are owned by sole proprietors who are not required to obtain it.
It is vital to know whether your business is required to have a workers’ policy. This mostly depends on the state in which you reside. Even if you are running a business that doesn’t require a lot of labor force, like the construction industry, you are still needed to carry insurance. Visit the NFIB`s guide to workers’ comp laws to start learning your state laws.
Another critical factor to think through is whether your business operates in various states. Mitchell Sharp of The Insurance Shop said that as much as laws differ from state to state, enterprises running in multiple countries need to understand that their insurance policy may be more difficult. In such a case, it is important to notify your representative during the citing period. Communicating with your agent and giving him detailed information can eliminate a lot of unnecessary problems in claim in the future.
How to get an insurance policy
Factors that determine the type of insurance to be given include the following: the type of state you reside in, kind of business, and the number of similar injuries that have occurred in your business. If you have the interest of signing up for the insurance, you can contact an insurance agent to provide the necessary coverage for your firm.
Irrespective of how you want to tackle workers’ comp, it’s vital to sign up for one. Failure to do it might lead to your business incurring penalties.