If you have employees, you need worker’s comp insurance.
It is important for the veteran business owner to understand the need, and how to make sure they are covered.
Most states require employers to purchase a policy to handle obligations to workers that are injured or fall ill as a result of their work.
Before the start of worker’s compensation requirements in the United States, workers would have to sue their employer in order to be compensated for an injury. This made it difficult for them to collect and could result in a devastating loss for the business.
So, what is worker’s Compensation, and what does it cover?
Worker’s compensation is a state regulated insurance program that provides compensation to employees who suffer on the job injuries and illnesses. Each state has its own laws and programs for worker’s comp. In general, an employee with a work related illness or injury can get worker’s compensation regardless of who is at fault. In exchange for the benefits, employees usually do not have the right to sue the employer in court for damages.
Workers compensation laws provide comprehensive and specific benefits to workers who suffer injury or illness. Benefits include medical expenses, death benefits, lost wages, and rehabilitation. If an employer does not carry insurance, this can leave an employer exposed to paying the benefits out of pocket along with any penalties of the state.
For a veteran owned business, it is important to consult and insurance professional regarding the need for this coverage. This is a separate policy from your business owner’s package or your commercial package policy.
Protecting the interests of your employees and your business is one step to ensuring a safe environment that will facilitate business growth.