Importance of Workers Compensation Insurance in a Company
By 2016, $96.5 billion was the cost of employers’ worker’s compensation. Some employers consider skipping insurance and enhancing their bottom line. It can be tricky if you can’t cover for workers claims. You will pay fines and go to court if you don’t have insurance for your workers. Depending with your business type, states expect businesses to have workers compensation. You should cover one or more employees in you are in the construction industry. They can include the owner of the business, board members or any corporate officers. In the agricultural industry you should cover six regular workers and 12 seasonal workers. Liability insurance and medical payment cover must be available for casual workers because it is not a must that they are covered.
In case the location is not the same place where your workers are based you need to inform your insurance provider. Your workers must be insured on location or not. Contractors must not insure subcontractors but should make sure they get it. To some states, workers compensation is not important but others require that you obtain it. Sole entrepreneurs are not required to purchase their insurance. You expose your business to liability if you don’t have workers compensation insurance. A business that tries to save money buy not obtaining the right insurance ends up pay the same amount or more. Proof of insurance cover must be produced failing which you will pay fines. If a business tries to reduce premiums they will be issued with a stop work order.
The insurance fraud division will charge you with criminal charges if you fail to adhere to the law. If you are served with a stop work order it means you are still in operation after its issuance. If a company does not obtain insurance or fails to report an injured worker. Fire or threaten workers who file claims for workers compensation, among others.
Workers have a right to insurance cover and if not they can report to workers’ compensation bureau. If a worker is injured while on duty their medical costs are covered from workers compensation. For a business where workers compensation is not a must, the employers are exposed to lawsuits or paying for medical costs.
If an employer fails to honor a workers compensation claim or refuse to apply medical costs, they risk being reported. It is no use to take an insurance cover and not use it so a company must move fast after an injury. Employers must understand the consequences of failing to honor an employee’s claim.
Brokers help in the best insurance for a business and best rates. Your company will be jeopardized if it is not insured. You may have to pay hefty fines or get punished.