Workers Comp
Every state requires that businesses carry worker's compensation insurance to cover their employees. There are a few exceptions based on the size of your company or industry, but these exceptions do not apply to many businesses.
What Is Worker's Compensation?
Worker's compensation, or worker's comp, is an insurance product that protects your employees if they are injured on the job or suffer from a work-related illness. This insurance will cover their medical care costs and pay a portion of the employee's wages until they can return to work.
Worker's comp also provides employers with protection. If your employee becomes disabled or loses their life as a result of workplace injury or illness, this insurance policy will protect the employer from being sued. If the employee sues for compensation, the insurer, not the business, will handle the case.
How Much Is Worker's Compensation Coverage?
Worker's comp coverage will be based on several things, which include:
Total payroll amount for the company
Number of high-risk positions in the company
Type of industry the business is in
If there has been a pattern of claims in the past
For instance, a call center with ten employees answering phones all day will have a lower risk value than a manufacturing shop that employs 30 welders. Welding is a higher-risk position involving a lot of physical work, large machinery, and dangerous tools. Since the risk of injuries is higher in this setting, the cost of insurance will also be higher.
What Happens If I Don't Have Worker's Compensation Coverage?
Two things will happen if you do not have worker's comp insurance protecting your business.
Depending on the state in which your business resides, you could be shut down by the state until you get the proper coverage. Some states will only impose fines until you get a worker's comp policy.
You are placing your business in a very dangerous position to be sued. If one of your employees gets hurt and you do not have coverage, your company will be 100 percent liable to cover all of their medical care and rehabilitation needs. Your employee can also sue for financial damages. This could cost your company tens of thousands, even hundreds of thousands of dollars.
Having worker's comp insurance will protect your business from losing everything if one of your employees is injured or suffers a work-related illness.
Truckers Insured Can Help You Find The Right Workers Comp Policy
When you need to find a worker's compensation policy for your business, Truckers Insured is here to help. We work with many different insurance companies so that we can find you the best policy at the best price.
Truckers Insured offers a full line of business insurance products, employee benefits insurance policies, personal insurance, and trucking industry insurance. We know that being insured in all areas of your life gives you confidence and security.
Speak with one of our customer care reps today. We will customize an insurance package to fit your business or personal needs.