If you are a business owner, you have to ensure that your workplace is safe for every employee so that they can complete their jobs as required. No matter how many guards you put in place, however, there are bound to be accidents at some point in time. If your employee faces an injury or even a medical illness from a condition at your place of business, they have the right to sue you and your company. Workers compensation can help you to avoid this potential court case and can cover the medical expenses for any conditions that are caused by one of your staff member’s tasks.
Defining Workers’ Comp
Before you can sign up for worker’s comp insurance at your business, you need to better understand exactly what it is and how it works. As mentioned, it is a type of insurance that will cover work-related medical expenses that any employee or customer at your company may encounter. It will also cover the loss of wages that may occur, but your staff, in most cases, does not have the right to sue after filing a claim. L&I laws are state-specific, so L&I Washington laws will be different from those of other states. They are also specific to the types of injuries that this insurance plan will cover and define certain limits as to the coverage that you need to have in place.
Does my Company Need Workers’ Compensation Insurance?
Depending on what state you live in, you will/will not need to provide workers comp insurance. Washington does require any company with employees to have a workers’ compensation policy in place. It does depend on the specific type of business that you run, the size of the team that you have, and the specific type of work that your employees have to do. If you have seasonal or temporary workers, you may not need one of these insurance policies for them. Sometimes, if you run a family business with only members of your immediate family as employees, you do not need the insurance either.
How to Obtain a Workers’ Compensation Policy
You do need business insurance as well as a workers’ compensation policy. In Washington, you can sign up with a private insurance company or with the state for your workers’ compensation coverage. Sometimes, however, state funding is a last resort if you sign up for a private policy with a workers’ comp insurance company. Make sure that you work with a provider that you can trust and that is willing to listen to your concerns and give you the coverage that you need.
When you sign up for workers’ compensation policies, you will have to answer questions about the specific requirements for your company. Again, you will have to share information about the type of company that you have to determine the premium type you need and the number of employees who require insurance. Typically, when you have more employees who are engaged in more dangerous work-related activities, you can expect to pay higher premiums overall. If your business is located in a dangerous area, or if you have employees who are on a higher payroll, you will also pay a higher premium.
Pricing of Workers’ Compensation Policies
The cost of workers’ compensation insurance policies range, depending on the premiums that you need. If you cannot afford to pay a premium outright, especially if you are just starting your business, look for a pay-as-you-go solution instead. You can pay off your premium on a monthly basis or after every payroll check comes out so that it is automatically deducted from your business account in smaller chunks. This can make the whole process much more manageable so that you can take care of your employees and keep your business legal.
Workers’ compensation insurance policies are required in the state of Washington for most businesses, except for those that operate on a farm or are run by a family. These policies help to protect and pay for your employees in case of injury or illness that comes from their required tasks. Determine if it is better for you to sign up with a private insurer or the state, and answer all questions truthfully to receive the premium you need. Following these tips will ensure that you are prepared for any situation you may come across while running your business.