If you own a business, chances are you have some type of workers’ compensation policy. Nearly every state requires business owners to purchase a policy for their employees, and some states even impose severe penalties if you fail to comply. So, you purchased coverage to avoid fines and legal repercussions—but have you ever taken a deeper look into what your policy actually covers?
If you’re not entirely sure how workers’ compensation coverage works, you’re not alone. Read our guide to workers’ comp insurance to learn your responsibilities, what your policy covers, and how to use CompWerks to get the perfect coverage for your business.
Before we get into workers’ compensation insurance, it’s important to understand why you need it. The short answer is that you’re responsible for keeping your workplace safe.
While your employees should always follow safety guidelines and look out for their coworkers, the Occupational Safety and Health Administration (OSHA) puts the onus on businesses. According to OSHA law, employers are required to examine workplace conditions, remove serious hazards, provide health and safety training, uphold safety procedures, and report workplace injuries and illnesses.
In addition to federal regulations, your state puts its own health and safety responsibilities on your business. These include offering insurance and assisting employees with filing workers’ compensation claims if they get injured on the job. However, every state is different; some allow sole proprietors and certain small business owners to forgo workers’ compensation insurance.
You can check your state laws to see if workers’ compensation insurance is mandatory. Even if it’s not, you’re still required to follow OSHA regulations and maintain a safe workplace. Plus, workers’ compensation insurance is beneficial for any business, regardless of the law.
Now that you know why you need workers’ compensation insurance, let’s get into how coverage works.
Every workplace poses a risk to employees. If you work in a high-risk industry like construction or transportation, those risks are obvious—vehicle accidents, falling ladders, and faulty machinery, to name a few. However, even employees in the most low-stakes industries can have accidents. Your office worker could slip on the steps, throw out their back, and rack up thousands of dollars in medical bills.
Workers’ compensation insurance protects both you and your employees from the financial repercussions of a workplace accident. When an employee sustains an injury or falls sick while on the job, their health insurance won’t handle the medical bills. Instead, your workers’ compensation policy kicks in to pay for their surgeries, doctor visits, rehabilitation costs, and a portion of lost wages until they return to work.
Workers’ compensation insurance doesn’t just keep your employees from draining their bank accounts due to a work-related injury. It also protects your business from legal repercussions. If you don’t have a workers’ compensation policy, your employees could sue you for payment. A policy generally prevents employees from pursuing legal action. However, in the off chance that you do get hit with a lawsuit, your employer’s liability coverage provides financial assistance for your business.
Finding a workers’ compensation policy can be overwhelming, whether you’re a brand-new business or an established company rethinking your insurance strategy. It’s not easy to sift through your options, understand the small differences between policies, and pick the best choice for your business. Luckily, Southpoint offers an innovative product that takes the guesswork out of finding workers’ compensation insurance: CompWerks.
With CompWerks, you only need to spend five minutes entering some information about your business. Then, our automated quoting tool provides a quote from one of our insurance company partners. You can purchase your policy right away or work with one of our insurance experts to choose the right quote. After that, you’re covered—it’s that easy.
CompWerks is completely free to use. You get access to the best workers’ compensation benefits on the market backed by the experienced insurance professionals at Southpoint, all with no hidden fees or extra costs. Plus, you get complimentary access to ThinkHR, a cutting-edge HR and compliance tool for businesses, for an entire year.
Finding the right workers’ compensation policy doesn’t have to be complicated. Check out CompWerks today to see how easy getting covered can be, or contact the insurance professionals at Southpoint to learn more.