What is a Worker’s Compensation policy and why do I need it?
Worker’s Compensation insurance provides wage replacement and medical benefits to employees injured during a job. This policy will pay a portion of the missed paychecks and cover any medical expenses of an employee who had an accident. In addition, employees who get sick due to their work can be covered as well.
Nearly every state in the United States of America requires companies to have a Worker’s Compensation policy. States also regulate this insurance coverage on the state level and require you to get the policy as soon as you hire your first employee.
Sole proprietors, business partners, and officers of the corporation can exempt themselves from the coverage of the Worker’s Compensation policy.
What does a Worker’s Compensation policy include?
As mentioned before, Worker’s Compensation provides benefits to injured or sick workers. In addition, it includes disability benefits, missed wage replacement, and death benefits. Your liability for work-related injuries and illnesses is reduced because of this coverage.
Keep in mind, this policy cannot substitute health insurance.
How much is a Worker’s Compensation policy?
State-regulated Worker’s Compensation policies are a little bit different than all other insurance policies. Usually, you pay an estimated price that is based on your kind of work and employee count, and then after the policy term finishes, an auditor contacts you to conduct an audit. If he finds that your premium was lower than your risk, you will need to pay extra to your policy. If he finds that your risk was lower than your premium, you will receive a refund for what you have already paid.
If you do not complete an audit after each policy term ends, you will not be able to have another Worker’s Compensation policy. Audits need to be done every year and in a timely matter.
How long does the Worker’s Compensation policy last and how can I renew it?
The typical term for a Worker’s Compensation policy is 1 year. The policy can be renewed with us or with the insurance company.
Our favorite Worker’s Compensation companies include:
