4 Details Every Small Business Owner Should Know about Workers’ Comp Insurance

If you’re an employer, you’ve heard of workers’ compensation insurance. It’s a type of policy that protects both employees and businesses in cases of work-related illness or accidents. These policies typically cover medical bills, lost wages, legal expenses, and death and disability benefits. That’s a basic definition, but there are a few more details every small business owner should know about workers’ comp.


As an employer, you likely need workers’ compensation insurance.


Most states require employers to carry workers’ comp policies. Some only demand it when a company has a certain number of employees. Still, others want businesses to have coverage even if they only employ a single, part-time worker.


As an employer, you need to know your state’s requirements. Otherwise, you could face fines or jail time for noncompliance.


You can save money by classifying your staff correctly.


Worker classification codes identify how much risk your employees face on the job, and each code affects workers’ comp rates. Riskier jobs come with higher prices, so take the time to get your classifications right. You don’t want to pay high premiums for no reason.


Not every worker needs coverage.


Insurance carriers typically don’t cover certain types of workers, such as independent contractors, domestic household workers, and volunteers. In addition, some states don’t require coverage for certain seasonal workers and make exemptions for charities and particular businesses that operate in industries such as agriculture or construction.


High safety standards can decrease your premiums.


As with most insurance policies, frequent workers’ comp claims will increase your rate. So, the best way to keep that premium low is to prioritize safety and avoid as many accidents as possible. Examine your current safety standards and talk to your staff members about how they can prevent injuries. You’ll save on insurance and increase productivity with happy, healthy employees.


Hibbs agents are standing by if you have any further questions about workers comp insurance and claims. Call today.