Workers compensation insurance; what is it and do you need it

Workers Compensation Insurance; what is it and do you need it?

Insurance is something that can seem a little puzzling, with longwinded policies that are often hard to make sense of, and if you’re a new business owner, it can be particularly tricky to know what types of insurance you should have. One type of policy is known as ‘workers’ compensation’, but what is it exactly, and does your business need it?

What is workers’ compensation?

If your employees get injured and harm themselves in some way while they’re at work, or even become sick, then this type of insurance will cover the medical costs of their treatment, and may also cover their loss of earnings if they are unable to work due to the nature of their injuries.

Workers’ compensation insurance works well for both parties; giving your employees peace of mind, should they experience a work-related accident, and giving your business the protection from costly law suits that an employee might file should they feel that your business was in some way negligent.

The types of businesses who will certainly need workers’ compensation insurance are restaurants, medical offices and construction companies, but there are many other professional service businesses who would benefit from it, such as IT, marketing and business consultants.

Do I need this type of insurance coverage for my business?

As a business owner, if you employ one or more people that aren’t partners in your business and who do not own it, then you will almost certainly need workers’ compensation coverage. Even if you are self-employed and have no employees, it would still be a good idea to purchase it, just as many sole proprietors do when a contract requires them to.

Some clients may even decide not to conduct business with your company if they discover that you don’t carry this insurance.

While the state of Texas does not mandate that you do so, many states do, and even if it is not a legal requirement, it makes good business sense to have it, as it can offer you protection.

How much will workers’ compensation insurance cost me?

The cost of this type of coverage can vary greatly depending on the nature of the job in question. For example, a construction worker is involved in the type of work that comes with a far higher risk of injury than a store assistant, so the premium for the store worker would be lower than for that of the construction worker. The cost of the coverage may also be based upon other factors like a business’s safety history, or whether you offer health insurance for your employees.

When searching for a workers’ compensation insurance policy for your business, you would be best using the services of a reputable company who will understand all the rules and requirements and review your business thoroughly to get you the coverage that best suits your business needs.

Apollo Payroll is one of the premier small business payroll services companies in Miami and Coral Gables. Apollo Payroll is dedicated to delivering expert advice, responsive service, and highly accurate payroll processing and reporting to ensure the success and growth of the business that we serve. Our services include comprehensive online "payroll services", "employee background check" and employee timekeeping services.