There are many companies that start a business without knowing all of the insurance policies that should be carried. If a company has as few as one employee it is highly recommended they carry a policy for workers compensation insurance coverage.
The monthly premium to carry this coverage will far out weight the amount you may have to pay should an employee become hurt on the job. Providing health insurance is great but, it will not pay for the damages sustained should the employee or you become injured at work.
Injuries sustained in the work place or in situations such as driving that is related to work. There is never a guarantee that someone will not get hurt and hold you responsible. The compensation will protect you and your business from lawsuits that could ruin the company or create a need to file bankruptcy.
Careers that have high risk of injury such as a construction site know the employees will be covered for all medical bills and loss of work should an accident or injury occur. There are many states that require employers to carry the insurance. The rules may vary such as the amount of employees and type of work being done.
While researching the business plan it should include the cost of paying for this insurance as well. The state may have stipulations such as if you employ less than four people there may not be a requirement for the extra compensation. This coverage should be considered regardless the number of employees you have.
If you have a friend or family member employed by you this does not mean you will not be sued should they get hurt. Workers compensation insurance is almost a guarantee of protection against the loss of a business, your home, and any savings. Employees seriously hurt can and will sue for damages to cover medical expenses and lost wages.
Get a quote from more than one workers compensation insurance company to compare coverage options and find the right workers comp policy for your particular business.
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