The cost of operating a business can be enough to keep any new owner awake at night. In addition to taxes, inventory costs, and other fixed expenses, small businesses also often have to deal with unexpected costs from time to time.
Business owners who are unprepared when something unexpected happens could end up in financial difficulty as a result. Fortunately, there are several different types of insurance that can help protect your business from some of these unanticipated expenses. One of the most important is workman’s compensation insurance.
Read on to learn more about what workers comp insurance is and why it’s so important for small business owners, or you can find further information at https://cerity.com/.
Table of Contents
What Is Workers Comp Insurance?
Workman’s compensation insurance is a type of business liability insurance that protects your company against any claims that employees or contractors might file in the event of an injury at work.
This type of insurance also helps protect you from being sued by the injured party as a result of their injuries by paying out predetermined amounts to the injured individual or any legal fees you incur as a result of the lawsuit. This ensures that you, as the business owner, don’t have to pay out of pocket for these injuries.
While every state has its own rules for what counts as an injury for which an employee can seek compensation, the majority of states require employers to carry workman’s compensation insurance.
What Is Covered By Workers Comp?
The type of injuries that are covered by workman’s compensation insurance vary by state, but in general, they include any health problems that an employee or contractor experiences while working for your company.
The most common types of injuries that are covered by workman’s compensation include sprains, strains, punctures, cuts, burns, and infections. In addition to health-related injuries, workman’s compensation insurance can also cover long-term disabilities that are work-related.
How to Find the Right Small Business Insurance Plan
The best way to find the right small business insurance plan is to start by getting a free business insurance quote from multiple insurance providers. When you get these free quotes, be sure to let your insurance agent know about any existing claims that your company has on record.
Once you’ve received your quotes, your next step is to compare them side by side. Look for any discrepancies between the policies, and pay special attention to the coverage amounts listed in each policy.
When you’ve found a few policies that you like, call each insurance agent to ask any questions that you may have.
Finally, don’t forget that you can change your business insurance policy at any time. If you add new employees, start operating in a new location, or buy new equipment, be sure to update your insurance policy to reflect these changes.
Workers comp insurance is one of the most important types of insurance for small business owners to have. This type of insurance protects you against lawsuits stemming from work-related injuries, as well as the medical bills that come with those injuries.
When you’re shopping for workman’s compensation insurance, be sure to compare multiple policies side by side to find the policy that best fits your business’s needs and fits within your budget.