Workers’ comp insurance is designed to protect businesses from lawsuits filed against them due to injuries sustained by employees while working. It also helps employers with legal defense costs and provides medical benefits to injured employees.
Injuries can happen every day. Some injuries are minor, and some are serious. When damage occurs, the employer must provide medical treatment and disability payments until the employee returns to work. It is where the options like Cerity – workers compensation insurance comes in, no matter if you have a small business. Usually, the cost starts at $20 per month and varies from platform to platform.
If you’ve never dealt with workers’ comp before, you may not realize how complicated it can get. But once you understand a few things, you’ll see why it’s essential to have such comp coverage.
This article helps to understand workers’ comp, including who needs it, what types of injuries qualify, and how to find the best policy for your company. You’ll also discover how to save money on your premiums.
Who Needs Workers’ Comp?
The first plan you should do while getting workers’ comp is to figure out whether or not your business qualifies. You need this comp if your company has more than one employee. However, if you have more than that, you will want to ensure you have the right type of coverage.
There are mainly two main types of workers’ comp insurance:
- Personal Injury Protection (PIP)
- Employer Liability (ELI)
PIP covers medical expenses, lost wages, and other damages caused by workplace accidents. ELI protects companies from being sued over workplace injuries.
For example, PIP might be enough if you have 25-50 employees. On the other hand, if you have more than 100 employees, you’ll probably want to go with ELI.
What Types Of Injuries Qualify?
Any injuries employees suffer in the workplace or elsewhere when acting within their “course and scope” of work are covered when the employer has workers’ compensation insurance. For example, the most frequent reason for workers’ comp death cases is traffic accidents which occur when employees are driving to work, regardless of whether it is using the company’s vehicle or in the employee’s vehicle.
In addition to injuries caused by accidents, this compensation also is a way to cover damages that employees might suffer from other accidents that happen while working, such as work-related violence, terrorist attacks, and natural catastrophes.
Workers’ comp policy also provides coverage for certain diseases and occupational illnesses (defined by state statutes) contracted as a consequence of work.
How To Find A Policy That Works Best For Your Business?
Once you decide whether or not you need it, the next step is finding a good policy at a price you can afford, like Cerity – workers compensation insurance. Many factors determine the cost of comp insurance, so shopping around is essential until you find one that works great for your business.
For starters, there are three major components to any such policy:
- Premiums: The amount you pay monthly for workers’ comp coverage comes in premiums. However, the higher the tip, the less likely you will get discounts.
- Deductible: A deductible is an amount you must pay before comp pays anything. If you have a $10,000 deductible, you would only pay 10% of the costs associated with your claims.
- Benefits: Workers’ comp benefits for small businesses include medical care, disability income replacement, rehabilitation services, and funeral expenses.
Conclusion
If you’re considering buying workers’ comp insurance for your small business, do your homework first. Look around until you find the right policy that fits your needs. Get accurate information about the insurance before buying it.
