Do I Need Workers Comp Insurance For My Business?

If you own a business or work for another company, you are probably aware of the risks associated with your job. A workers' compensation policy can be a valuable asset in protecting your employees and preventing physical and psychological harm. But, what exactly is workers comp insurance? This analysis will guide you through.

What Is Workers Comp Insurance

Workers comp is a type of insurance that provides compensation insurance for employees injured on the job and covers injuries caused by accidents in other parts of your business.

Injuries Covered By Workers’ Comp Insurance

Workers’ comp can help pay medical costs for injuries suffered at work. These injuries include violence, natural disaster, and terrorism.

Will It Protect Me From Getting Sued?

If you're a business owner, you may be familiar with workers’ comp’s "one-call" provision. It allows you to take legal action against an injured employee, regardless of whether your workers' comp policy covers the incident. Without such coverage, business owners could easily find themselves the victim of a lawsuit brought by an injured employee.

Is Workers Comp Insurance Mandatory?

The majority of states require businesses to carry workers’ comp insurance, but it varies by state. But, in some states, employers may not have to obtain workers’ comp until they’ve hired as many as five employees.

Who Is Exempt From Workers’ Comp Insurance?

Some companies may exempt workers depending on the type of work they do.

Among them includes:

1. Employees working on commission

2. Certain real estate agents and insurance representatives

3. Family employees

4. Part-time workers

5. Volunteers

6. Those who work in exchange for food or lodging

To close, no matter what type of business you run, workers' compensation is a great way to protect both your business and your employees. Penalties for non-payment of workers' wages, when required by law, can profoundly negatively impact a business.

At Second Western Insurance Services, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote.