As a small business owner, you have a lot to think about. Insurance is always a big and confusing consideration. There are all kinds of available insurance coverages for small businesses, and they will all scare you into thinking the risk is worth the cost. One insurance that you should take seriously is workman’s comp insurance, if for no other reason than it is required by most states.
What is Workers’ Compensation Insurance?
Workers’ comp insurance protects employees who are injured on the job by covering the cost of medical care, lost wages and rehabilitation associated with the injury. It also protects businesses against negligence lawsuits. Compensation is provided regardless of whose fault it is. Not carrying this type of insurance can leave your business exposed to out of pocket expenses for injuries as well as penalties levied by your state.
Where Do You Get Workers’ Compensation Insurance?
Workers’ compensation is usually purchased separately from a general business owners’ insurance policy. Requirements can vary by state. Some states require that insurance is secured through private insurance companies. Other states provide coverage through a state-run program. Workmans comp insurance premiums are calculated based on your industry’s risk classification and your payroll.
Workman’s compensation insurance is one of those expenses that is worth the cost. The benefits to employees and employers outweigh the costs of coverage. Make sure you are in compliance with any laws in your state.