Workers’ compensation insurance is a type of policy that is mandatory for businesses in many states, but the legal requirement is not the only reason why the policy is so important for businesses, especially for small enterprises. The coverage provided by the policy gives protection to the business itself as well to its employees – here are some things that you should know about workers’ comp.
The Scope of Workers’ Comp Insurance
Workers’ compensation is the insurance for businesses that covers work-related injuries and illnesses as well as many of the related aspects. Most employers make substantial efforts to provide safe and healthy work environments to their employees, but despite these efforts, accidents can still happen. For example, if you are a restaurant owner and a member of your staff working in the kitchen cuts their finger, the medical expenses related to accident and the lost wages of the employee are covered for by the workers’ comp insurance. The coverage provided by the policy should not be confused with the coverage provided by the health insurance – if an employee of yours suffers the same accident in their home, the accident did not occur in the employee’s work environment, therefore the expenses will not be covered for by the workers’ comp, but by the medical insurance.
Workers’ comp insurance usually covers for the medical expenses related to the treatment of physical conditions that emerge as the consequence of the employee’s exposure to certain chemicals. The laws that govern that aspect vary from state to state, so before shopping for your workers’ comp, it is a good idea to familiarize yourself with the applicable regulations.
Who Needs Workers’ Comp
As a general rule, every business that has employees is required by the law to have workers’ comp insurance. However, the requirements regarding the insurance are mandated at state-level – in some states, for example, only businesses that have more than three or five employees are required to have workers’ comp. However, the policy is useful for any small business, even for the ones for which the acquisition of the policy is not mandated by local laws and regulations.
How to Get Your Workers’ Compensation Insurance
The best and easiest way to pick the Colorado workers compensation insurance policy that works best for your business is to turn to an Colorado insurance agent or to an independent insurance broker. The difference between the two types of professionals is that agents usually work for one insurer, while brokers work with multiple insurance companies, selling a wider range of products. Both types of specialists can provide you valuable information related to workers’ comp and they can help you choose the policy that suits your needs.
If your broker offers you multiple solutions, choose a policy offered by an insurer that has been in the business for long and has a good reputation, too. The insurance industry is stable in some states, but volatile in others, with insurance companies appearing and going out of business almost overnight, therefore it is in your best interest to buy your insurance from a company that is likely to be around for a long time.