Business owners need to protect themselves financially by purchasing workers' compensation insurance coverage. If you're a business owner, you need to be well informed about workers' compensation insurance so that you don't make assumptions that you shouldn't.
The following are six things you shouldn't assume about workers' compensation insurance coverage.
You don't need workers' compensation if you make sure that your workplace is safe.
Even if you do everything you can to maximize workplace safety for your workers, accidents can still happen. It's also important to realize that investments in safety equipment and precautions that you make at your company facilities won't get you out of any legal obligations; you have to purchase workers' compensation coverage.
You don't have to purchase workers' compensation insurance coverage if you don't want to.
Workers' compensation insurance is not always optional. This type of commercial insurance is required by law in many situations. You need to check on the exact laws in your state to make sure you're meeting your responsibilities as an employer. In most states, employers must purchase workers' compensation coverage if they employ a certain minimum number of employees.
You won't get sued by your employees.
You could end up getting sued by your employees for workers' compensation benefits even if you have a great relationship with all your staff members. While maintaining a good relationship with your staff members is important, you should also buy workers' compensation coverage to offer your employees financial protections.
You don't need workers' compensation insurance if your employees all work from home.
Having a staff of workers who work from home won't get you out of having to buy workers' compensation coverage. Your employees can still become injured through their work for your company even if they're working from their homes or from an off-site location.
You don't need workers' compensation insurance if you run a family business.
Some people who run family businesses think that they don't have to buy workers' compensation insurance if all of their employees are family members. However, even family members count as employees and can make it so that you have enough employees to require workers' compensation insurance in your state.
You don't need workers' compensation insurance if all your employees are part-time.
While the exact workers' compensation insurance requirements for part-time employees vary by state, you can't assume that you don't need coverage for part-time employees. In some states, workers' compensation coverage is required for both full-time and part-time employees.
Contact a local insurance service to learn more about workers' compensation insurance coverage.