As a business owner, it is up to you to protect your most valuable resources. The people who work for you make it possible for you to move your business forward. This is why
workers' compensation insurance is so important for your business. In most states, you are required to purchase a workers' compensation policy if you have more than four employees. While you can sign a waiver that states you are exempt, it will be devastating to your business if you or an employee has an accident that your company must pay for out of pocket.
A Sole Proprietor with No Employees
A sole proprietor with no employees can avoid buying a workers' compensation policy if they file a waiver with the state. While a sole proprietor can purchase a workers' comp policy, they may choose to use their own personal health insurance coverage if the benefits are better. The choice is up to the business owner as long as they comply with the mandatory insurance requirements.
Include Workers Who Receive 1099s
Many companies have contracts with independent contractors who receive 1099s. They are not actually employees of the company, and their names are not on the payroll, but since they work with the business regularly, both parties benefit from the partnership. This mutual agreement should include workers' compensation insurance to protect each sides' investment.
Personal Coverage for Work-related Injuries
Whether you own your business or want to add a layer of protection to the coverage you have from your employer, you have the right to purchase a
worker's compensation policy that you can rely on in case your employer's policy isn't sufficient to cover the potential risk you may face while you are on the job. Having your own personal policy is just one way to make sure you are fully covered in the event of an emergency.
Hiring Independent Contractors
When you hire an independent contractor to make repairs to your business or equipment, most will have their own insurance. You still have the option to provide
workers' compensation insurance for them, even if they will only be there for a short period of time. Without independent contractors, your business may not be able to get back on track if an emergency occurs.
Workers' compensation insurance is mandatory in many states. Part of the reason it is required is to guarantee that a business will survive if one or more of its employees are injured. At
Little & Sons Insurance Services, our experts understand how confusing it can be to determine what insurance you need.
Contact us today to get started on your customized coverage tailored to suit your unique insurance needs!
