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What is Workers Compensation insurance?

Commonly known as workmans comp or workers comp, Workers Compensation insurance provides protection for employees if an employee suffers a work-related illness or injury.

Workers Compensation insurance provides benefits to your employees when they make a claim against your workplace for injury or illness. Some of the examples of the benefits include:

  • Medical care
  • Replacement of lost wages when taking time off to recover
  • Funeral costs paid for if they were to pass away
  • Disability support costs

Workers Compensation insurance also provides financial protection for your business by covering legal costs if an employee or their family sues your business for damages.

Here are some situations when Workers Compensation insurance can protect your employees:

  • If they injure themselves by tripping on stairs at your business location
  • Suffer from carpal tunnel syndrome caused by unsafe typing habits
  • Get injured in a car accident while visiting a customer

Does my business need Workers Compensation insurance?

Depending on the location of your business, Workers Compensation is determined by state law if it is legally required. If legally required, your business will need to have a policy in place before hiring your first employee.

Your policy will pay for your employees’ medical expenses and partial lost wages, a cost your business is likely unable to afford without experiencing a significant financial impact.

Most Workers Compensation insurance policies will also include coverage for Employers’ Liability insurance, protecting you from lawsuits relating to workplace injuries.

 

How Much Is Workers Compensation insurance?

There are a few determining factors that insurance companies use when pricing Workers Compensation insurance. These include details of your business like:

  • Industry – the type of business, level of exposure to risk
  • Payroll – how much turnover does your business make
  • Claims history
  • Coverall limits
  • Location of your business

Every small business is different with its unique risk factors, so your policy is likely to differ from other companies.

BizInsure provides Workers Compensation insurance in all states except Alaska, Hawaii, Ohio, Wyoming, Washington and North Dakota.

By law, is Workers Compensation insurance required?

Legally, most states require businesses to have Workers Compensation insurance as soon as they hire their first employee. If you are unsure check with your state laws.

What is Employers’ Liability insurance?

This intention of this section of the Workers Compensation insurance policy is to protect you, the employer from lawsuits relating to a workplace injury and negligence.

Employers Liability insurance is typically included in a Workers Compensation insurance policy unless you purchased your policy from a monopolistic state fund. It can be added to your existing Workers Compensation policy as an endorsement through a private insurer.

Workers Compensation insurance for Self-Employed Workers

If you are self-employed with no employees, you will need to check your state laws, as business insurance requirements depend on your location. Not having Workers Compensation insurance when required, can result in financial penalties like fines.

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