Are you an employer that’s looking to provide coverage for your staff? Do you wonder if you’re required to provide workers comp insurance by the state in which you reside? If so, then the only way to find out is by doing your research.
It’s important to know your state’s rules on workers’ comp insurance. Not abiding by them could result in you getting penalized with hefty fines. These fines can be difficult for small business owners to recover from.
See below for an in-depth guide on what workers comp insurance is and how to find out if you’re required to have it.
What Is Workers Comp Insurance?
Perhaps you’re constantly worried that one of your staff members will slip and fall, causing a serious injury that will put them out of work for a long period of time.
Maybe you would consider your line of work to be extra risky for injury, and want to make sure that your entire staff has the support they need during an emergency.
Whatever the case might be, workers comp insurance can help you out. By providing workers’ comp for your staff, you’ll be giving them the benefits they need.
It’s a type of business insurance that’s solely dedicated to offering benefits to those workers who have suffered a work-related injury or illness.
It can help protect them and their family from a financial setback by providing coverage for their expensive medical bills, lost wages while they stay home to recover, or the cost of the rehabilitation therapy they’ve been assigned.
Workers’ comp insurance can also provide financial coverage if a work-related injury were to lead to death. That way, their funeral services, and all other expenses are covered.
We offer workers compensation insurance for all employers, regardless of the industry you’re in. That way, you’ll have the peace of mind you seek.
Do I Need to Provide Workers’ Comp Insurance for My Employees?
As we mentioned earlier, every state has different rules and qualifications for workers’ comp insurance.
For example, some states require you to have workers’ comp coverage as long as you require at least one person. This is generally the rule for most states, which then have specific details.
In Colorado, they require it regardless of whether that one employee is full-time or part-time. It also doesn’t matter how they get paid.
Then there are other states, such as Iowa, that don’t mention a minimum number of employees on staff that would trigger a requirement of workers’ comp. That said, it’s still widely understood that companies invest in it to protect their staff.
So here’s the answer you’re looking for: yes, you’re likely required to provide your employees with workers’ compensation insurance. It can be a saving grace for everyone involved, including you and your company (more on that in a bit).
If you’d like to find out more about your state’s requirements, read our article for a basic overview of workers’ compensation requirements by state.
The Benefits of Workers’ Compensation for Employers
Contrary to popular belief, workers’ comp insurance doesn’t just benefit the worker who receives it. It can also help your company get some much-needed peace of mind. Be sure to read below for an in-depth guide of the two.
1. Protects Your Workers’ Future
Think about this: let’s say one of your best workers ends up getting injured due to the negligence of a coworker. Now, he/she is left with expensive medical bills and has to sit out of work for weeks (even months) to recover, losing out on their expected income.
Without you providing workers’ comp insurance, that worker’s financial future hangs in the balance. They’ll have to cover the costs themselves in the short-term, digging into their own pockets.
With workers’ comp coverage, your worker’s finances are secured. Your workers’ comp provider will cover all of the lost wages, medical bills, and so forth.
2. Protects Your Relationship With Your Staff
Imagine being in that employee’s shoes. Being forced to cover the medical bills of an injury you weren’t responsible for because your employer doesn’t have workers’ comp.
If you don’t have workers’ compensation coverage, your workers will likely consider suing you for the compensation they deserve.
Workers comp can help protect the relationship you have with your best workers. Once they file a claim, the provider will step in and take over communications, eliminating you from the talks completely.
That way, your employees will be able to return to work with their finances secured, lessening the likelihood that they’ll quit or jump ship.
3. Protects Your Company’s Future
The overall price for a work-related injury depends on several factors. However, it isn’t uncommon for that to reach six figures.
For all of you thinking you’ll pay for any work-related injuries in the future, think again. That cost can put your entire company in a financial bind that you may never be able to recover from.
Not to mention that, once the FBI finds out you didn’t have a policy, they’ll tack you with hefty fines, only adding to the charges you’re now responsible for.
Invest in Workers’ Comp Insurance Today
Now that you have seen an in-depth guide to workers’ comp insurance and why your company needs to invest in it, be sure to find the right provider!
Be sure to read this article for more information on work safety tips and how you can protect your employees from potential injuries in the future.
For more inquiries, please be sure to fill out this online contact for a free online quote and we will be happy to assist you further.