What is Required By Law That I Have to Provide for Employees?

When it comes to business liability insurance coverage, your company will find that the need for that coverage changes and evolves as the business grows. This is certainly going to be the case when your company begins hiring employees. Although your local laws will dictate specifics pertaining to the kind of coverage you need to have in place at any given time and out-of-pocket expenses after claims, once your company hires employees it is usually time to carry worker's compensation insurance.

When to Provide Certain Coverage

Some areas will require that your company carry worker's compensation coverage after hiring more than one employee, for example. Other areas may not require you do so until three or more employees have been hired. If you are uncertain, you can either check with your state insurance agency or ask your insurance broker for exact details.

This will help you know when to begin reviewing and selecting the addition of worker's compensation insurance to your existing policy. Part time employees in some areas, too, may need to be covered under a worker's compensation policy. Also, there are some areas where it may be required to carry worker's compensation insurance on subcontractors. So, before you get ready to take on more help around your office be certain you are aware whether or not you will need to get a worker's compensation plan in place ahead of time.

You will not want to operate your company without the proper coverage thinking that, even if it is the law, your company probably will not get caught functioning without this insurance. This is because if something occurred at your place of business where the employee conducts his or her work from day to day which caused serious illness or injury, your company could be at risk for being sued by that employee. Not only would your company face serious penalties depending on the laws it will have violated, it could be wiped out financially by a lawsuit filed by the employee.

Company and Employee Interests

Your company would not want to risk so much by violating a law. It is unethical, for one thing, and it could prove to be the downfall of your company. You have put enough time, energy, passion and money into building your company. The last thing you would want for it is to be destroyed over a suit which could have been avoided entirely simply by carrying an additional and affordable form of insurance coverage.

There are some companies that carry worker's compensation insurance even if they have only one or two employees and there is no requirement to do so by law. This should seem like common sense. It is far better to pay for a predictable worker's compensation premium and have the comfort knowing that if an accident took place and your valued employee was injured that coverage would pay for medical bills and assist with things like compensating them for lost wages.

You would have an employee who could return to perform their job after they have recovered, saving you from the trouble of having to find a replacement for them. Plus, you would have suffered very little in the way of additional expenses concerning the employee's accident. The worker's compensation or other business insurance would have covered most everything. You will want to carefully consider carrying worker's compensation insurance. The risks of doing without it when it is required by law to provide for your employees are too great, but the cost of the coverage itself is not.

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