Workerâ€™s Compensation Insurance: Did You Know about these 5 Important Points?
If you have a small business and you donâ€™t have workerâ€™s compensation insurance policy, let us tell you that itâ€™s a bad situation to be in, before we even get started on the topic. However, that can also be a good thing for now, because by the time you are done reading this article, you might be able to avoid a lot of mistakes which new entrepreneurs often end up making while deciding on their workerâ€™s insurance policies.
The State Factor: Workerâ€™s Insurance Laws Vary
The workerâ€™s comp benefits are not handled by the federal government, as the local state government has final authority over how the insurance laws are applied.
You should definitely research the legal stipulations of the state first, to know what happens if an employee gets injured at the job and you donâ€™t have insurance. While workerâ€™s comp policies may not be mandatory in every state, we can tell you that in none of the states, the verdict goes well for the business!
You Can Get Better Quotes than You Think
Itâ€™s possible that what you are paying for your current workerâ€™s insurance policy is not the best you could have gotten. In fact, it is very likely to be the case since new business owners often do not have the contacts or the experience to know which workers comp insurance policy would be right for their business, and how much lower the quote can be negotiated into.
Online comparison is likely the best way to go about it, as it allows for a quick comparison of the quotes from multiple insurers within a very short time.
You are Covered as an Employee of the Company Too
This isnâ€™t applicable for big businesses of course, but for small businesses, where you are also a working employee of your own company, workerâ€™s compensation insurance covers you and your employees simultaneously, against any injuries received while working.Â
Did You Know that Your Employees Can Sue You Directly?
Unless you have a proper workers compensation policy in place, the injured worker/workers can sue you directly, which could wreak havoc on your personal finances. Itâ€™s one of the prime reasons why employers never take that chance, especially when it involves risky businesses such as construction, handyman work, plumbing, roofing, servicing, etc.
It Isnâ€™t As Expensive As You May Think
We already mentioned that you can possibly get a better quote online, but even setting the specific quotes aside, workerâ€™s compensation insurance plans are designed to be proportional to the risks and the size of the business itself. So, if you have a small business with a small workforce, you donâ€™t need to worry about paying huge premiums, to begin with.
Now that some of the important aspects have been discussed, you should know how to avoid some of the common mistakes, and whether or not, it might be time to look for better options, once your current contract with your present insurer nears its end.