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Workers Compensation Insurance for Small Businesses

Insurance workers compensation
Insurance workers compensation

As a small business owner or manager, you know that if you have one or more employees who are not considered owners or business partners, you need insurance workers compensation. In nearly every state in America, workers compensation is required coverage for every company to maintain. Even if it is not mandatory in your state, it is still a very good idea to carry a workers comp policy to protect both you and your employees in the event of a work-related injury. Furthermore, some clients may opt not to do business with your company if you don’t have workers comp, fearful of employee accidents that could potentially occur while on their property during the project. If your state requires insurance workers compensation coverage, being caught without it typically generates an extremely hefty penalty.

 

What Does it Cover?

For the most part, insurance workers compensation will only cover illnesses or injuries that occurred while the employee was on the job. Accidents that occur outside of work hours or while at home will likely not qualify. In addition, if the employee is found to be at fault for the accident—examples include being intoxicated while working, or behaving deliberately negligently at the time of injury—coverage will likely be denied. Workers comp may include compensation for some or all of the following:

 

  • Temporary / permanent disability, to help compensate for lost wages
  • Medical care, including hospital bills, surgeries, equipment, and medication
  • Rehabilitation, including physical therapy and skills training
  • Death benefits for those related to and financially dependent upon the employee