When Do You Need To Get Workers Comp Insurance?
Workers’ compensation insurance is something that is mandatory for any business that meets the requirements. When exactly you need to buy work comp insurance depends on the state in which your business is active. In most of the states, you need to get a worker’s comp insurance right after you have hired your first employee. But before you buy a worker compensation insurance, you need to analyze your business and find out what kind of insurance will be more suitable. This makes sure that you will not have to suffer financially in the event of one of your employees getting injured or sick on the job. Any business that meets the requirements for workers’ comp insurance and still chooses not to get it can face criminal or civil penalties as well.
Workers Compensation Requirements
The laws are different for workers comp insurance in every state. That is why the first thing you need to do is get familiar with the work laws of your state. If your company is functioning in multiple states, it means you need to get a workers’ compensation insurance that meets the requirements of all those states. Even though most of the states make worker compensation insurance mandatory after the first employee, there are states where insurance becomes mandatory after hiring two or more employees. If you still have not bought a worker’s compensation policy, you can look into insurance services from Paige & Campbell who are providing great deals on it. The minimum amount of insurance you need to buy also depends on the state requirements and the size of your business. The rules can vary further when it comes to exemptions and limitations. For example: if you are running a construction business, you will need to buy the workers’ comp insurance. This is because it is a risky job and workers are more likely to get injured as compared to other jobs. Also, if you are a sole proprietor, you have the choice of getting a worker’s compensation for yourself. It is not mandatory, but it can be beneficial for you to get one.
When to Buy Workers Comp Insurance
Even if you don’t meet the mandatory state requirements, buying worker’s compensation insurance is in your best interest. Not only does it guarantees immediate care for your employees, but it also saves your business from paying expensive medical bills. You can try comparing the prices of worker compensation insurance with the actual price that you might have to spend on medical bills. You also need to see it from your employees’ point of view. Anyone who gets injured or sick, causing their wages to be reduced or nil, will get financial help from the insurance company. When your workers know that you are providing them with this insurance, they will feel more secure. In case a person is killed on the job, the insurance provides benefits to their family. You also have to keep in mind that if you do not have a worker’s compensation insurance and you fail to pay for an accident, the employee can bring charges on you and can sue you in court. The legal ramifications will not only drain your money but will also waste a lot of your time, possibly destroying your company.
Consequences of Not Buying a Workers Compensation Insurance
You will have to pay administrative penalties in most states if you fail to buy worker’s compensation insurance. These penalties can be in the form of heavy fines or you could also get a stop-order for your business from the authorities. Some states have more strict rules and you can face criminal charges as well. It is seen as a felony in some states and the guilty party can even be put in jail.