Let’s talk worker’s compensation insurance! Picture a well-formulated team working together to help your business get remarkable results. In this case, the biggest threat to your business is an unforeseen accident that will leave your team struggling financially, emotionally, and physically.
That’s why employee compensation insurance is there! If you want to save your business and employees from the crippling impact of workplace accidents, get worker compensation insurance right away! This blog will help you assess everything you need about employee comp insurance.
What Is Employee Compensation Insurance
Employee compensation insurance is an ideal way to protect injured workers. The insurance makes sure that the workers keep receiving their lost wages at the time of recovery. Besides, employee comp insurance also covers the medical expenses of injured workers.
This type of insurance is entirely different and better than personal health insurance. Private insurance won’t cover the mishaps of the work. In comparison, employee comp insurance compensates you better if things go south at work. Here are the primary benefits of employee compensation insurance.
- It covers the medical expenses of workers
- Most of the employee’s lost wages are recovered
- If the worker passes away, the family gets the post-death insurance benefits
When Do I Need Employee Compensation Insurance
If you’re a well-established business person or start-up company owner, it is imperative to understand when to buy worker comp insurance. Unfortunately, it isn’t as easy as it seems. Several factors will let you know if you need employee comp insurance at the time.
1. Location of Your Business
Different states around the world have different rules regarding employee comp insurance. Some have made it a law for every employer to provide comp insurance, while others haven’t. For instance, the comp insurance provider must be provided by every employer according to the workers compensation insurance California Act.
Remember, only the laws of the state where your employees work will matter. If your employees work in a state where workers comp insurance is necessary by the law, you’ll have to get them insured even if it is not a law in your business-established state.
2. Number of Employees
There isn’t a specific number or range of workers where employee compensation insurance becomes necessary. Most states tempt you to buy workers comp insurance as soon as you hire the first employee.
Without the insurance, you’ll have to spend cash because health insurance won’t cover your employee’s work-related injury bills.
Do You Need Workers Compensation Insurance As A Sole Proprietor?
At this point, it is crystal clear that workers’ compensation insurance becomes vital if you have an employee. But what if you’re working as an independent contractor or sole proprietor? The answer is pretty much the same!
In some states, you’ll need workers’ comp insurance to get a contractor’s license. California is one of them! So, If you’re working in California or a state with similar laws, workers compensation insurance California becomes a necessity, even if your business has zero employees.
What If You Don’t Have Employee Compensation Insurance?
If you live in a state where comp insurance isn’t a law, you won’t face many problems. However, for states like California, there are greater chances that any contractor without business insurance CA will face civil and criminal penalties.
Most of the time, not having workers comp insurance will subject you only to administrative penalties. In those cases, your business may suffer at the hands of fines and stop-work notices. However, some states can impose criminal charges. In those situations, you’ll have to face felony charges or even some jail time.
Conclusion
Employee compensation insurance is one of the many elemental benefits businesses must acquire. Besides, in most states, it is required by the law. If you’re confused about whether you need workers’ comp insurance or not, we are here to help you!
Whether you live in California, Arizona, Nevada, or Texas, Gleetopia is ideal for finding the best employee comp insurance for your budget. Hurry! Get the best budget quote for workers’ compensation insurance and prevent any administrative penalties.
Start your quote today and fulfill your business needs within no time.
