Do I Need Workers Compensation Insurance?
As an employer, you have a legal responsibility to your employees to make the workplace a safe environment. However, it’s important to remember that accidents happen even when every reasonable safety measure has been taken.
According to most state laws, if you have employees, you are required to carry some form of Workers Compensation Insurance. Even in non-mandatory states, Workers Compensation coverage is a very good idea, particularly if you have multiple employees or their work entails hazardous operations.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners’ policies (BOPs) are sold as package policies, they don’t include coverage for workers’ injuries.