When Should You Purchase Workers Compensation Insurance?

Workers compensation insurance is an essential component of a business. It protects your company and your employees when an accident occurs on the job.

Your company's workers compensation risks depend on the specifics of your business and the type of work employees perform. Therefore, it's imperative that you obtain business insurance that addresses work-related injuries and illnesses specific to your company.

Get The Coverage Before Hiring Employees

As an employer, you must familiarize yourself with and follow state laws concerning workers compensation (as laws vary state by state). In addition, make sure you have the necessary coverage in place before hiring a new employee.

In several states, you must have coverage when you hire one or more individuals (some exceptions may apply to specific businesses or other exceptional circumstances). It's critical that you comply with your state's laws to avoid business complications including fines and penalties. By obtaining coverage before hiring employees, you can avoid many associated risks.

Get Clarity On State Laws

No two workers compensation laws are the same. In particular, state laws about minimum coverage can differ. For example, some states require businesses to procure coverage when they hire an employee. Other states may allow you to have one or two employees without purchasing coverage.

Exceptions can apply to certain types of employees. For example, a partner in your business may not require workers compensation insurance. However, a new employee will likely need coverage.

Cover The Risks To Your Employees

Make sure the policies you purchase cover the common risks associated with your business. For example, a construction business would have more risk of employee injury than an employee working in an office. This is likely due to the comparatively higher risk of injuries and accidents on construction sites.

Workers compensation insurance can also cover work-related illnesses. So, you'll want to ensure that your policy covers these risks at an appropriate level. For example, a chemical processing business might have a higher risk of illnesses and will likely require higher limits for work-related illness.

Remember to put your employees first when shopping for coverage. By obtaining a solid policy before onboarding employees, you demonstrate that you care about their well-being on the job. You also limit the risk of financial losses in the event of a job site accident or illness.

We've got you covered. Call Southwest Commercial Insurance at (512) 771-6091 for a free workers compensation insurance quote.