What is Workers’ Comp?

The state you operate in requires workers’ compensation insurance if you have employees. Both full-time and part-time employees fall under this requirement. As a coverage that provides wages and medical benefits to employees who have suffered an injury on the job, Worker’s Compensation Insurance is essential to your business.

What would a workplace injury look like?

We can all imagine workplace injuries where an employee is hurt carrying boxes of inventory into an expo, slipping on the office floor, or getting into an accident while driving the company car. However, a workplace injury could also occur while your employee is walking to and from their car, commuting to work or a work event in their personal vehicle, or even injuring themselves at home when working remotely if they can prove it was in the completion of work responsibilities.

Whom does it protect?

Workers’ compensation protects both your business and your employees. By paying your employees if they are injured while completing work responsibilities, you preserve your capital for other business expenses and ensure that your valued employees receive the financial support they need to recover and return to work.

When do I need Workers’ Comp for my business?

As soon as you hire that first employee to avoid any State and Federal penalties. We suggest reviewing your options as you prepare to hire. This way, you do not find yourself scrambling.

What if my business only uses temp or contracted employees?

Depending on the state and the contractual agreement with the staffing agency, companies regularly have gaps in their coverage. There is likely a clause in your staffing agreement outlining the coverages required and who is responsible for purchasing coverage.

What are the risks if I don’t have appropriate Workers, Comp coverage?

Considering Workers’ Compensation Insurance is state mandated, each state has different rules around the amounts you may need and the penalties associated with not purchasing coverage. In some states, it is considered a criminal offense and punishable with a fine and jail time. While other states, the penalty for not holding coverage is regarded as a misdemeanor.

How often should I review my Workers’ Comp?

Workers’ Comp insurance is based on your payroll numbers and should be renewed at least annually. If your brand is scaling rapidly in the same year, we strongly suggest reviewing your coverage, payrolls, and classifications more often to align with your brand growth.

What are the most essential elements of a policy?
When exploring your options for workers comp coverage, it is essential to understand the states where you will be required to meet their state-specific requirements. Ohio/Washington/North Dakota/ Wyoming are the four states where you purchase coverage directly from the state. Other states allow your business to shop for your coverage through third-party brokers.
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