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Does Your Small Business Really Need Workers’ Comp Insurance?

If you own a business and have employees, it’s in your best interest to buy a Workers’ Compensation policy. This protects your company if an employee is ever injured while on the job or simply on the property. A good Workers’ Comp policy will also prevent you from being named in a lawsuit later.

What Is Workers’ Comp Insurance?

Workers’ Compensation insurance will pay the medical expenses and lost wages of an employee who has been injured on the job. It will also pay to have them retrained if they are unable to return to their previous position. Workers’ Comp also provides a death benefit if a worker should die while on the job.

Why Is Workers’ Comp Important?

If an employee is injured while on the job, your business would be responsible for paying for their medical expenses. This could be financially devastating to your business. Worker’s comp will step in and pay their medical bills and lost wages so your company doesn’t have to.

What Injuries Are Covered?

Injuries or illnesses that can be proven to be directly associated with a person’s job will be covered. Although rules may vary by state and by industry, a work-related health event should be covered.

What Does Workers’ Comp Pay for Other Than Medical Expenses?

Workers’ comp will also cover missed wages, and retraining costs, and will provide a death benefit if an employee dies from a work-related illness or injury.

What Limitations and Restrictions Apply?

Different plans have different caps on the amount that will be paid on specific types of claims. This includes cost-sharing and deductibles. The policy may restrict payment if the employee was using drugs or intoxicated when the injury occurred. Limitations may also be put in place if the employee already had an injury in that area that was unrelated to work.

Is Workers’ Comp Mandatory for Small Businesses?

Workers’ comp is mandatory in most states if you have employees. If you choose to not purchase Workers’ comp insurance, you will need to provide proof that you have other forms of insurance or that you are financially responsible without it.

As a Business Owner Do I Need Workers’ Comp?

If you are the only one in the business, you may not need Workers’ Comp if you have a health insurance policy that is sufficient enough to cover your needs. You should look into a policy that covers an interruption in your business if you can’t work for a short period.

What Type of Employees Are Considered When Determining the Amount of Insurance That’s Needed?

An employee that is paid by you for the work they do for you and is listed on your payroll on a full-time basis will be counted toward your Workers’ Comp obligations. Seasonal workers and independent contractors are not included. Volunteers and family members are also normally excluded.

How Much Does Workers’ Comp Insurance Cost?

Most Workers’ Comp policies cost less than $50 per month. There are a few determining factors that you will need to consider. Talking to your insurance agent will give you a better idea.

Get the Best Workers’ Compensation Insurance with McCarty Insurance

If you want to find the right Workers’ Comp policy for your business, you will need to work with a reputable agent. Contact the experienced agents at McCarty Insurance today to get the information you need to make an informed decision.


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