The importance of protecting your business with Workers' Compensation Insurance cannot be overstated. This coverage protects against work-related accidents, sickness, and even death. Unlike other types of insurance for employees, workers' compensation is paid for solely by the employer. This insurance protects not only your employees, but your business as well.
Required by Law
In most states, if you have three or more employees, you are responsible for keeping Workers' Compensation Insurance. It is required by law in every state except Texas, and neglecting to carry this coverage could leave you subject to devastating consequences including penalties and fines by your state, as well as liability for paying the expense of your employees' medical costs and rehabilitation if they suffer a job-related injury or illness. You could even face imprisonment and potentially be barred from conducting business in your state as a consequence of not having Workers' Compensation Insurance.
In addition to these potential impacts of not carrying Workers' Compensation Insurance, there is still the fact that employees are entitled to a percentage of their regular wages during any time they are forced to miss work due to their work-associated illness or injury. This expense is covered when you have Workers' Compensation Insurance. Without it, you will pay out of pocket.
There are some worker exemptions for which certain businesses are not required to carry Workers' Compensation. Your Mountcastle agent will help you determine whether Workers' Compensation Insurance is mandatory for your organization and answer any questions you may have.
Worker's Compensation FAQs
In most states (all except Texas) if you have three or more full or part-time employees or are ready to hire your first employee, you will need this coverage.
This type of policy will vary depending on your insurance company, but generally, the premiums are calculated based on the amount of payroll an employer has and how dangerous the work may be. Prior claims can also affect your rate with a lower premium for fewer previous claims and an increased rate for companies with a higher claim history. Mountcastle agents can help match you with the right insurance company that can offer you the lowest rate possible.
If an employee is injured at work, or if they should suffer a work-related illness or death, worker's comp helps cover lost wages, medical expenses including ongoing care costs, rehabilitation, and funeral costs.