When you first get your startup underway, there is likely a lot going on in your mind. Knowing what to do when it comes to workers’ compensation may not be a task at the top of your list. However, it’s one that you really should consider going into the future.
You Must Get Workers’ Compensation Insurance
Workers’ compensation insurance is a type of insurance policy that will pay wage benefits and medical bills for employees who are injured at work. While each state has its own type of mandated regulations for the type of workers’ compensation coverage you need, it’s important to note that you should be getting a policy that meets your needs as well. In most states, if you have anyone on the payroll, including yourself, then it’s time to purchase a worker’s compensation policy.
Why Is Workers’ Compensation A Necessity?
Workers’ compensation is necessary for business owners to have so that they can fulfill their obligation of protecting their employees who have become injured on the job. There are various situations in which workers’ compensation benefits kick in. These include work-related injuries, aggravation of a pre-existing injury, repetitive stress injuries, and occupational illnesses and diseases.
What Does Workers’ Compensation Coverage Entail?
When employees receive work injury assistance through your workers’ compensation plan, they will receive payment in a few different ways. First, their medical bills and hospital expenses will be covered by the workers’ compensation insurance policy. When the worker is disabled due to their inability to work, your coverage will pay them for their time off. Lastly, this type of insurance policy will pay for a worker’s retraining and rehabilitation after their injury.
Independent Contractors Are Different
If part of your business dealings is with independent contractors, you’re likely wondering if you’ll need to have workers’ compensation coverage for them. The short answer is that you don’t need any sort of insurance coverage for your independent contractors. They should have their own insurance policy. However, realize there is a gray area in the law when it comes to independent contractors. They must be truly independent from your company and not treated like employees.
Understanding workers’ compensation rights is a necessity for every new business owner. The sooner you learn about these rights, the sooner you can ensure that your business is up to snuff regarding these rights. The above are just four of the many that you should start to learn about.
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