Here’s what you need to know about workers comp insurance.
As a business owner, you probably understand that workers compensation insurance is an essential type of coverage for your business. However, what do you really know about your workers comp policy? Here are some of the key things that you need to know about your workers compensation coverage.
- It’s State Mandated
Nearly every state requires businesses to carry some minimum level of workers compensation insurance. In fact, many states require employers to carry this type of coverage even if they only have one, part-time employee. Because insurance laws differ by state, it’s important that you understand your state’s insurance requirements. Failure to adhere to insurance laws can result in fines and, in some cases, incarceration.
- Correctly Classifying Your Employees Can Save You Money
Many business owners do not realize that different worker classification codes have different prices. This is because each code denotes the occupational risk that an employee faces. The riskier the job, the higher the insurance costs. By taking the time to ensure that you are correctly classifying your employees, you can ensure that you aren’t overpaying for your workers comp coverage.
- Workers Comp Can Help You Avoid Lawsuits
Back in the day, the only way an employee could receive workers compensation benefits was by suing their employer. However, the workers compensation system has changed drastically since these times. Now injured employees can receive compensation so long as they waive their right to sue their employers. If an employee wants to sue, then they will forgo their workers compensation benefits. If this is the case, then the business owner can sometime use workers compensation to cover the lawsuit.
These are some of the important things that every business owner should know about workers compensation insurance. Do you have more questions regarding workers comp for your business? We at PMC Insurance Group are experts on workers compensation insurance and can help you put the proper policies in place. Contact us today to learn more about getting competitive coverage for your small business clients.