What Your Small Business Should Know About Workers’ Compensation
Workers’ compensation is something that every small business needs to make essential before hiring anyone. When assessing your business’s various liabilities, you cannot overlook the potential for employee injuries. According to statistics, there are over 2.5 million nonfatal workplace injuries every year in the U.S. This figure should be alarming to any business owner and illustrates the necessity of a comprehensive workers’ compensation policy.
Workers’ Compensation: Things to Check First
Even if you need workers’ compensation insurance, you may not know how to find the right policy or navigate your options. Consider this guide to learn everything you need to know about workers comp benefits and insurance.
Your State’s Requirements
One thing to consider when looking for coverage is your state’s individual requirements. In some states, employers with only a few staff members are not required to carry coverage. In other states, there are severe penalties if a company does not maintain coverage — regardless of how many people are employed. You should do some research to identify your state’s requirements.
What Coverage You Need
Once you understand what kind of coverage is required, you’ll know what to start looking for in the right policy. Of course, simply opting for the bare minimum state-required coverage may leave your business vulnerable to liability. Instead, you should consider what kind of coverage your business needs. For example, if your company operates in a high-risk industry such as roofing or construction, you’ll likely need more coverage than a retail store would. Take an honest inventory of your company’s various risks to ensure all your exposures have the proper coverage.
Where To Find a Policy
Businesses must also consider where to obtain a workers’ compensation policy. Some states govern their own internal marketplace for insurance coverage, and others allow private insurers to provide coverage. Businesses must determine which option applies to their state, and if private insurance is available, find an insurer that meets their needs. Different insurers will have different workers’ compensation coverage options, so businesses should research options and obtain quotes from various insurers. It will help you get the best rate on a policy, but more importantly, it will ensure you have sufficient coverage.
How To Budget for Coverage
Integrating a workers’ comp premium into your business’s budget can be challenging. Insurance is often expensive and may be even more costly for businesses in high-risk fields. Still, maintaining coverage will ultimately save your company money — potentially thousands — if you have an employee who gets injured on the job. If your business struggles to handle the monthly premium, talk to your insurance agent about different payment options. You could utilize a pay-as-you-go arrangement or another alternative method of payment.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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Dayville Office
Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
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Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
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