Preparation for the worst is also necessary when thinking of starting your own business. Getting your business insured is the most cost effective way. A number of people who runs their own business often choose purchasing full coverage small business insurance for protecting their customers, employees, and companies. But, this isn’t enough.
You need to obtain other insurance polices also such as officers insurance, property insurance, professional liability insurance, and worker’s compensation insurance for getting adequate protection. In addition to protecting your business premise, they will also help in saving you from financial loss if there is theft, vandalism, or fire. More often, unfortunately, the business owners never give importance to worker’s compensation insurance.
What is worker’s compensation?
Worker’s compensation insurance is an insurance which is a must in all states of United States which is also known as employer’s liability insurance or workman’s compensation insurance. This worker’s compensation insurance is for covering at least some portion of the employee’s disability and medical expenses when they lose their wages because of on-the-job injuries or work-related illness.
The worker’s compensation insurance cover a number of areas such as:
1. Medical treatment that makes payment for physical therapy of the employee, travel expenses due to work-related injuries, and hospital stays;
2. Disease exposure that are occupational hazards;
3. Rehabilitation for making sure that the employee can be placed in the same profession or in some other field;
4. Loss of wages (this is usually two-thirds of the salary of the employee);
5. Death benefits.
What type of protection does this policy give you?
Many business owners think that this policy is an overhead expense and it does not give them any benefit. Actually, this police is an inexpensive benefit for protecting both the employee and business.
Firstly, worker’s compensation policy helps in preventing your business and you from financial loss. After purchasing worker’s compensation insurance, that insurance company awards the employee some fund if they get disabled or injured while working. Thus, you never need to pay from your pocket.
Secondly, this insurance policy can help you to avoid unnecessary problems and lawsuits if any of your employee dies or gets injured, since in exchange for their right to take action legally against you, they are offered the basic coverage.
In addition to this, if your employee attempts to make an inappropriate claim for the injuries while on the job, this insurance policy will cover your legal expense too. Worker’s compensation insurance will help in the improvement of your cash flow by eliminating unnecessary losses.
Worker’s compensation insurance helps both the employers and the employees in the long run. Remember the following tips if you are planning to purchase a policy. The coverage for employer’s liability differs for each insurance policy. So, while purchasing a policy, think of the policy that will suit your budget the best and the coverage you need. For grabbing a great deal, always keep in mind to shop around. You can contact quote estimators online for calculating the cost of the coverage that you need.
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