When Is Workers’ Compensation Insurance Necessary?

When Is Workers’ Compensation Insurance Necessary?

Knowing when you need workers’ comp insurance can be tricky since each state has its own laws. Most states require some type of coverage to be purchased to ensure that your employees are protected. The amounts, however, may vary. Deadlines for filing claims may be different from state to state as well.

Know the Laws of Your State

When it comes to workers’ compensation insurance, talk to your insurance agent to know how much coverage you require. Your agent will be able to fill you in on all of the coverage limitations, the cost of the premiums, and any deductibles that need to be paid.

Contractors and Sub-Contractors

While most contractors and sub-contractors will carry their own insurance, it’s a good idea to have coverage that extends to them as well. They may not be your responsibility, but it’s a good idea to have all of your bases covered if an accident occurs. This can be especially true if they have insurance, but it isn’t sufficient to cover the cost of their medical expenses.

What About Part-Time Employees?

If your state has any type of workers’ compensation requirements in place, you can rest assured that they extend to all employees. This would include full-time, part-time, or seasonal workers. As long as they are on your payroll, they should be covered.

Are Their Alternative Forms of Insurance?

If you don’t want to carry workers’ compensation coverage, you can find alternative coverage through your own insurance carrier. You are required to carry workers’ compensation insurance or its equivalent. It’s up to you which one you choose to purchase.

Workers’ comp insurance can be confusing. Talk to the agents at Steve Wilk Insurance Agency today to learn more about workers’ comp insurance for your business. We can help you lock in the coverage you need so that both you and your employees are protected at all times.