There are many different types of insurance policies that businesses need in order to stay protected. Options like a BOP, or Business Owner’s Policy, which combines things like insurance on your building and its property, as well as general liability insurance are necessities. Depending on the type of business that you run, you may also need commercial auto insurance, manufacturing insurance, and other things.
As always, you also need to protect your workers, in addition to your company’s checkbook, by having workers’ compensation insurance. As it turns out, even the smallest businesses may need one.
Defining Workers’ Compensation Insurance
Before you can begin choosing whether or not you need workers’ compensation insurance, you first need to know what it is and what it does. This type of insurance is designed to protect your employees from workplace accidents. If someone is hurt on the job and it turns out to be the company’s fault, due to a slippery, sign-less floor, machinery without proper warnings, or any other situation, your workers’ compensation insurance will help your employees get back on their feet.
This type of policy will pay for their missed wages, medical bills, and other related expenses, as long as the company is found liable for the injury. Not only will your employees have some peace of mind, but you also won’t have to pay for these things directly out of the company’s coffers. Instead, your insurance will cover it.
How Big Is Your Company?
Now that you understand the importance of workers’ compensation insurance, it’s time to go over a few things:
Company Size Doesn’t Matter – Whether you have one employee or thousands of them, you need to have workers’ compensation insurance to cover them. Even if that single employee is part-time and you do most of the work, as long as you have a physical location, you need to have workers’ compensation coverage.
Consider State Laws in Effect – There are state laws, as well as local ones, like county and city regulations, which can help you determine whether or not you need to have workers’ compensation insurance for your part-time employees. By keeping in compliance with those laws, you won’t be subjected to fines and penalties.
Can You Have Workers’ Comp Cover Part-Time Workers?
Some companies follow the old-school belief that only full-time employees need to be covered by a workers’ compensation policy. This isn’t true at all. Part-time workers can indeed be covered. The number of hours of pay covered by the insurance will just reflect the ones that they would work if they were healthy. For example, if your injured employee only worked 15 hours a week, then that’s the amount that workers’ comp will cover.
Contact Spivey Insurance
If you have any questions about whether or not you need workers’ compensation insurance or are wondering whether or not you need to have enough coverage for all of your employees, then reach out to Spivey Insurance. Our knowledgeable agents can help you make that determination, in addition to setting up your policies to protect your business.