If you’re considering starting a business, it’s important to have a comprehensive insurance package to protect your investment. Workers’ compensation is a type of insurance that provides protection not only for employees, but for the employer as well. Here are some frequently asked questions (FAQs) about workers’ compensation:
Do I have to purchase workers’ compensation? It depends on where your business is located. Many states require you to purchase workers’ compensation insurance if you have one or more employees; state laws also determine benefit amounts, provider options, and claim limits.
How does workers’ compensation protect employees? If an employee is injured while working, workers’ compensation helps handle the resulting medical bills and pays for lost wages. If an employee is killed on the job, workers’ compensation will provide benefits to dependents.
How does workers’ compensation protect employers? When employees use the workers’ compensation benefit, they automatically relinquish their right to sue you.
What if I have multiple businesses in different states? You’ll likely have to consult each state’s requirements to ensure that your policy is meeting standards all around. Your commercial insurance agent can help ensure your employees are covered no matter where they’re working.
How can I avoid workers’ compensation fraud? Questionable claims are on the rise. Protect yourself by hiring good employees and using background checks. At work, create a safety program, and ensure you communicate workplace best practices and benefits.