When Should a Business Buy a Workers Compensation Insurance

work injury claim form

The Ideal Time

No matter what business you’re in if you have employees then you have an immediate obligation to ensure they are covered in case of an on-the-job injury. So, the ideal time to purchase a Workers Compensation Insurance Policy is before your first hire.

If your business does well, you will be likely to increase your staff. One of the considerations potential employees weigh when deciding to accept your job offer is employee benefits. Workers’ Compensation Insurance is important to every employee. They want to know that, in case of injury or inability to work, their needs are going to be looked after.

As you begin a new business, that’s the time to talk with your insurance agent about a Workers Compensation Policy. The reality is: from the moment you take on your very first employee; your business needs Workers’ Comp.

Why is Workers’ Comp Crucial?

When you asked someone to come and work for you, you took on a responsibility. You promised to keep that employee safe in your workplace. If one of your hires is hurt on the job his medical needs, costs, rehabilitation program and time away from work due to injury are your responsibility.

Most states mandate that employers must have Workers’ Comp Insurance for the people who work for them. Workers’ Comp covers areas like on-the-job fatalities, worker disability, wage replacement while convalescing, medical expenses, equipment required for rehab and any other related costs.

State laws vary. You need to know what coverage your state stipulates. For example, in Texas Workers’ Comp insurance is optional. Meanwhile, in South Carolina, you are not required to carry workers’ compensation insurance unless you have four or more full-time employees. But, in California you must insure even a single employee.

Regardless of what your state’s ruling, responsible employers who care about their workers purchase insurance that will protect them in case of injury.

As a business owner, we strongly urge you to:

• Discover Workers’ Comp legislation in your state:

Make certain you’re covered legally in case of worker on-the-job accidents. Consult a law firm that specializes in Workers’ Comp law to ascertain that you have complied with state Workers’ Comp obligations.

 1.Assess Industry Considerations

Workers’ Comp mandates often vary depending on the industry sector of your business. If you’re employing in a high-risk industry like construction agriculture or oil drilling, then there are higher chances of workplace injury than in computer technology or sales.

For example, many construction businesses are required to have coverage sooner than office businesses.

  2. Be Cautious – Be Covered

Even if your state laws say you don’t need to provide Workers’ Comp benefits, you and your company could be sued by an employee or group of employees for unsafe work site conditions. Avoid costly, time-consuming lawsuits and the negative publicity that goes with them. Take out Workers’ Comp Insurance even if it is not state mandated.

3.Your Workers’ Comp Concerns

Workers’ Comp legislation is complicated. Laws vary from state to state and even among various industries. The Workers’ Comp rules have exceptions based on individual cases and geographic regions.

As a business owner, seek legal assistance well versed in Worker Compensation law.

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