The Importance of Having Worker’s Compensation Insurance

workers compWorker’s Compensation is insurance that covers an employee in case of injury on the job.  With the economy the way it is, employers are often looking for ways to cut costs and often consider skipping having worker’s compensation insurance as it is often quite expensive, especially in industries such as construction, trucking, and other industries with a greater risk of injury.  This is not only unwise, it is illegal in most states.

Any business has the potential for employee injury.   If an employee gets hurt or ill due to their job, worker’s compensation provides coverage. The costs of medical care, rehabilitation treatments and lost wages are covered by this insurance if the injury is due to the employment.

The cost of insurance depends on the amount of risk involved. Certain fields are more dangerous than others making the cost of workers’ compensation more expensive. The premium your business pays depends on your employees’ job descriptions as well as your experience factor (if any claims have been paid to employees in the past.)

You can purchase workers’ compensation insurance coverage through an agent or a broker from any of the privately licensed insurers authorized to write policies.

Keep in mind that if you are hiring workers in a freelance position, you may be required to cover them on your policy if they do not have their own insurance.  Make sure you know the requirements in your state before engaging the services of a freelance worker.

One way to help reduce your premiums is to have a safety plan/policy in place.  Have written procedures on how certain jobs are to be performed, and make sure all employees are properly trained on the use of equipment.  Employees properly trained are less likely to be injured on the job.

If an employee is injured and you do not have coverage, you face the possibility of paying expensive medical bills, lost wages, as well as penalties for not being in compliance with the law.  Your business may also be shut down until a policy can be put in place.

Don’t risk penalties for not having coverage for you employees in case of an accident.  It just isn’t worth it.

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