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Worker’s Comp Insurance or Worker’s Compensation Insurance is an insurance policy that provides employees with wage and medical benefits if they become injured or ill at work.
With worker’s compensation insurance, you provide your business with the coverage needed to take responsibility for injuries suffered by your employees on the job. For small companies, this type of policy can pay for employee replacement wages and medical expenses, which would be a substantial cost for your company if it had to come out of your pocket. Worker’s compensation insurance can also help protect your business by providing funds for legal expenses if your employee would decide to sue your company rather than receive benefits.
Many states require employers to have Worker Compensation coverage at the time of hiring their first employees. Employer obligations vary by state but, for example, if you have one or more full-time or part-time employees are required to have worker’s compensation insurance. Pittsburgh business owners can benefit greatly from worker’s compensation insurances by keeping their employees and their business safe.
Carrying workers compensation insurance can significantly benefit your company whether your state requires it or not, so be sure to check what your employer obligations are so that you can stay in full compliance with the law. Just like you insure other valuable like your car and your home, it is essential to have a policy in place to ensure your employees are taken care of and your company is protected in the event of injury or illness.
In some states, only businesses with a certain number of employees are required to carry worker’s compensation insurance. Some states only require coverage when your company has a certain amount of employees. For example, in Arkansas, if you have three or more employees, you are required to have worker’s compensation insurance. In states like Ohio, if you have one or more employees, you are required to carry worker’s compensation insurance.
The industry your company operates in also plays a role in the regulations you must follow for worker’s compensation insurance. For example, roofers in California are required to have a worker’s compensation policy in place whether they have employees or not.
If you live in a state, such as Texas, where worker’s compensation insurance is optional, then you will not suffer a penalty. Keep in mind, if your employees are injured on the job, they can sue your company.
If you live in a state such as Pennsylvania and you decide not to purchase a worker’s compensation policy, you can face steep fines that could be detrimental to your business.
Non-compliance penalty and price from state to state vary, but in most cases, you may face consequences such as:
Additionally, without worker’s compensation insurance, you will have to pay legal expenses to defend your business in court, and you may also be required to pay out of pocket for your employee’s medical expenses.
These penalties can be extremely damaging to your business. The cost of maintaining adequate worker’s compensation coverage is a small price to pay compared to the grand expenses going uninsured can bring to your business, so it is essential to reach out to the experts at Quantum Source Insurance today! Pittsburgh business owners can keep their employees and assets safe by working with our knowledgeable agents to find the best policy for your business.
When was the last time you updated your business insurance policies? Take the Quantum Challenge to see if you need an updated policy. (Short answer: You do.)