You know that owning a business can be a lot of hard work and that you have to take risks, but it can also be a lot of fun. However, you don’t want to leave your business facing risks all of the time. You want to make sure that your company and your employees are protected in case of an accident. If you are a new entrepreneur, then you are probably asking yourself if you need workers’ compensation insurance.
What is Workers’ Compensation?
Workers' Compensation insurance is an insurance that funds an employee's medical cost due to a work related injury or illness. It can also cover their wages from work missed during that period.
If one of your employees falls and breaks their arm, workers’ compensation would cover the cost of their medical bills. It can also be a safeguard to reduce the employee’s ability to sue your company in case of an accident.
How Does It Work?
If your employee is in an accident or work related injury or illness, it is their responsibility to report it to the superior immediately. Some states allow a defined time frame that your employee must report their injury for the claim to be valid.
If the injury is severe enough, the employee can seek immediate medical attention. In this instance, the superior will give the employee a form to complete that will be forwarded to the insurance company concerning the claim. The medical practitioner will forward the medical bill directly to the insurance agency. The insurance company will assign your employee with a specialist to ask questions about lost wages, medical care, disability benefits, and rehabilitation.
This specialist will be the person your employee will contact throughout the claim process.
Is Workers’ Compensation Required by Law?
While each state varies with laws regarding workers’ compensation insurance, failure to comply with state laws about workers’ compensation insurance can lead to fines or criminal charges. Some states may have requirements according to the amount of employees a business has, while other states only require certain types of jobs to carry workers’ compensation insurance.
What Does It Cover and What Does It Not Cover?
Workers’ compensation will cover medical costs to employees that suffered from an injury or illness while on performing job-related duties. This includes medical bills, doctor visits, rehabilitation costs, medication and wages lost. In the worst case scenario, workers’ compensation insurance can cover funeral costs and deceased employee’s death benefits. Your employee will not be covered if they got into a fight at work, broke company policy or got hurt while committing a crime.
How Do I Get Workers’ Compensation for My Business?
First, you should learn your state’s requirements for workers’ compensation insurance. Once you have determined the laws in your area, you’ll need to look for an insurance provider.
At Coastal Resource Group, we work with an affordable workers’ compensation insurance company. Call us toll free at 1-888-757-7444 to chat with our licensed professions to help pair you with the best benefits for your company.