Workers compensation insurance is what a firm get from an insurance company to cover their staff in the event of an accident. When one of your employees get injured their medical expenses are covered by this guarantee. The injuries could include medical bills, lost wages, rehabilitation and even permanent disability or death. The compensation supervisory committee is in charge of setting up the worker’s compensation benefits.
The way the insurance company determines the compensation premium is very simple. They often a portion of your expected pay. Injuries that staff obtain are different, and this is because they work in different places. So companies get a compensation policy depending to the kind of hazard that is in that business.
It is possible that you are wondering if you should get a workers insurance for your business. The truth of the matter is if you have staff in your business then you must get one. The type of companies that do not need this kind of coverage are companies that do not have employees and are run by individuals. If you have employees, and you do not have this coverage it is possible that you could get very high fine or even get your business shut down by authorities. If your children or other relatives are working in the business even without pay you also need to cover them too. A works insurance policy will prevent your company from losing money when you need to pay an employee who has been injured.
A business owner might not be confident if they are also included in the workers compensation insurance. What you should know is that its up to you as the business owner to decide if you want to be included or not. If you cover yourself it means that in the event that you get hurt you should be compensated. If you include yourself you will have to be in the payroll too but if you do not want to be part of it then you don’t have to be.
The insurance company has factors that they look at when one says they are the owner when they are setting up a compensation policy. Below we shall discuss what qualifies one to be the owner. Children and the spouse is included in the business owner of a company owned by an individual. There is also partnership in this case only the partners are excluded and not the spouses and other relatives. For business that are held by collaboration just the people with hundred percent stake are not included. You now have a clear understanding of what is workers compensation insurance and what makes you qualify to have it.