Workers compensation insurance provides benefits for employees if an on-the-job accident occurs or an employee becomes ill during the performance of job-related duties due to workplace exposure or circumstances.<\/p>\n
Benefits to which employees are entitled include medical costs, death benefits, loss of pay and job training in the event that a workplace incident makes the employee unable to continue in his or her current job.<\/p>\n
Unless your company happens to be a sole proprietorship or a partnership, the answer is yes, your employees will need to be covered. However, what type<\/strong> of workers compensation your company needs is based more on geography than any other factor<\/p>\n Why? Because the type of workers compensation required for businesses is regulated by state<\/strong> laws, not federal laws. Furthermore, many states have different requirements about what type of workers compensation a company is required to have.<\/p>\n Most states have laws allowing companies to purchase their workers compensation insurance directly from an insurance company. However, North Dakota, Ohio, Washington, West Virginia and Wyoming all <\/strong>require companies to purchase insurance through state-operated funds.<\/p>\n Several other states allow companies to choose whether they wish to purchase their insurance from state funds or<\/strong> private insurance companies. These include Arizona, California, Colorado, Idaho, Maryland, Michigan, Minnesota, Montana, New York, Oklahoma, Oregon, Pennsylvania and Utah.<\/p>\n To further complicate matters, two states — Texas and New Jersey — do not require employers to purchase workers compensation at all. However, even in these two states, an employer is still considered liable if an employee is injured<\/strong> on the job, so workers compensation insurance is something employers should at least consider. Those employers who lack coverage will still<\/strong> be required to pay these expenses, in addition to possible fines for not having it in the first place.<\/p>\n A final note to keep in mind is that those individuals hired as contractors and subcontractors by a company also<\/strong> have to be covered in the event of a workplace injury.<\/p>\n So, how does an employer go about finding the right<\/strong> workers compensation insurance for employees? The best bet is to contact your independent insurance agent, who can tell you exactly what insurance your state requires businesses to have.<\/p>\n Contact us for more information on the best coverage to protect your company and<\/strong> your employees.<\/p>\n