What Should Owners of Small Businesses Know About Local Workers’ Compensation Laws?
June 22, 2017
As far as an owner of a small business is concerned, there could be several queries with respect to work injury compensation insurance. If you run a small business too, check out some of the important facts you should know about workers’ compensation.
Keep in mind the number of workers you have on your payroll
There are many states where the employers are exempted from work injury compensation insurance if the number of employees is five or less than that. So, in case you have less than 5 employees, you may not have to carry this insurance. But, even though it may not be mandatory in your case, you may still want to have it for the benefit of your business and employees.
You need to see how your employees are classified on the payroll
This means, all your employees may not be covered under your workers’ compensation program if you are running a small business. Usually, you should ensure the coverage of your full-time employees only. Very often, interns, contractors, and part-time employees are exempted from this kind of coverage.
In case, work injury compensation is a requirement, ensure that the law is followed.
Though workers’ compensation may be a requirement in many states, the specifications of the law may differ from state to state. While in some States it is a part of the state-run initiative, in others, the program is run by private insurers. But if you are uncertain how it works in your state, it is better to get in touch with an insurance agent in your locality.
Have you hired your family members as employees?
There are some states where family members can be exempted from the Workers’ Compensation Insurance program of a business owner, though not always. Although it is easy to overlook that even your close family members such as a daughter, a brother or a spouse can be your employees technically, there are many cases where the law may treat them so as far as the scope of this insurance is concerned. So, you need to make sure where your state stands on this issue.
Workers’ compensation insurance is good for you and your insurance
The coverage protects your workers from health expenses that are incurred due to job-related injuries. However, workers’ compensation for small business also protects a business from lawsuits related to costs that are covered under this program.