As soon as entrepreneurs start their businesses, they must become informed about the various kinds of insurance that are necessary to protect their financial interests. Workers compensation is a type of insurance that covers injuries or death that may occur during the performance of work duties or during company-held events. It is a valuable resource for helping your workers when an accident occurs and can be critical in assisting them to get back to work after an injury. Here are some basic facts entrepreneurs should know about workers compensation insurance.
Workers Compensation Helps Businesses and Workers
Workers compensation insurance is a system that was designed to provide coverage for workers who were injured on the job, and to provide financial assistance for them as they heal from the injuries, so they could return to work. Otherwise, companies might be involved in lengthy court cases for damages that would drain the finances of the business and would be too slow in helping the individuals that were injured.
The Right Business Classification Is Critical
Getting the right classification is key to acquiring an affordable premium. Entrepreneurs must ensure that they are put into a category that appropriately reflects the risk for injury in their type of business. For example, the “construction” category can include a wide range of activities, some of which entail more risk of injury than others. These differences are reflected in the premiums.
Not All Businesses Need Workers Compensation Insurance
Who is required to have workers compensation insurance varies from one state to another. In some cases, you will be required to carry insurance if you only have one employee. In other states, family members that work for the company may not require workers compensation coverage.
Workers Can Receive Benefits Even When They Are at Fault
Workers compensation also protects even if they are at fault in some way in the accident. As long as the incident occurred during performing of their duties, on company time or during a company-sponsored event, their injuries will be covered. This coverage can be a boon for unexpected accidents that can happen whenever the company is involved.
Workers Compensation Rates Vary Widely
Workers compensation premiums vary widely from state to state and classification to classification. Premiums are based on the statistical likelihood of injury, which can be very high in some types of work and very low in other types of work. Because of the intricacies of the law and coverage, business owners should work closely with their insurance agents to get the best possible rates. They may be able to lower their premium by offering heavy equipment training through Australia Wide Forklift Training Centre or other training to employees.