4 Things Contractors Need To Know Before Buying Workers' Compensation

​Worker's compensation insurance is a type of coverage that protects your business and your employees if they are injured or become ill from work-related activity. But, should you really buy it, knowing that it can be a financial burden to your company? To help you out, here are the things you should know before buying workers' comp insurance.

Workers' Comp Defined
Workers' comp is a type of liability insurance that provides financial assistance to employees who suffer from injuries or illnesses linked to work. The policy covers lost wages and medical expenses associated with these mishaps. In the construction industry where accidents are most likely to happen, it is a critical requirement to prevent even more substantial financial burden on your company. In exchange, your employee agrees not to sue your business for any illness or injury, regardless if it's your company's fault.

Worker's Comp Coverage
Workers' comp cover employees who suffer from a work-related illness or injury. This implies that it should be associated with the worker's job responsibilities, typically those mishaps that happen when the worker is at the job site. This list of injuries covered can be broad and may consist of accidents ranging from slipping and falling to exposure to hazardous chemicals. States, however, have different regulations with the type of illnesses and injuries covered, which is why it is advisable to verify this with your council for more information.

Workers' Comp Necessity
Workers' comp requirement for businesses also varies per state. In most cases, it is not mandatory until a company hires employees who are not partners or owners of the business. Be minded, however, that states may require firms under the construction industry to get worker's comp, even if the company only has a sole owner and has no staff, given the risky nature of the business.

Workers' Comp Cost
The price of the workers' compensation insurance may vary depending on different factors such as your business location, classification code, claims history, the dollar amount of payroll and nature of business.

Wrapping Up
Workers' Comp not only protects both the welfare of your business and employees. Make sure to inform yourself before buying one and get the insurance you deserve.

At CSIS Insurance Services, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 501-2747. Get your free quote today by CLICKING HERE.