Workers Comp

 

liability insurance

Workers Compensation is an insurance policy purchased by the employer to provide benefits for job related employee injuries. This insurance pays benefits to your employees if they are injured while on the job. When a worker suffers an injury, even a minor one, it is immediately reported to the workers compensation insurance carrier. The employee seeks necessary medical attention, and the insurance company pays the bills. If the employee misses work because of the injury, the insurance company pays the employee limited benefits for the lost time.

If the employee is not able to return to the job due to a permanent injury, the insurer pays to re-train the employee for another line of work. If the employee dies, the insurer pays a death benefit to the employee’s family. Workers compensation covers all the employees of the small business

 

Requirements for Employers:

Employees and Employers: Any employer in a non-construction industry who employs four or more part or full-time employees, must obtain workers compensation coverage. Corporate officers and members of an LLC who own at least 10% of the business are considered employees, unless they elect to exempt themselves from the coverage requirements. Sole proprietors and partners in the non-construction industry are not considered to be employees unless they elect to be employees.

Construction Industry: An employer in the construction industry who employs one or more part or full-time employees must obtain workers compensation coverage. Sole proprietors, partners, members of a limited liability company (LLC) who owns at least 10% of the business, and corporate officers are considered employees. Corporate officers, and members of an LLC who own at least 10% of the business, may elect to exempt themselves from the coverage requirements.

A construction industry contractor, who sub-contracts all or part of their work, must obtain proof of workers compensation coverage or a Certificate of Election to be Exempt from all sub-contractors, prior to work being done. If the sub-contractor is not covered or exempt, for purposes of workers compensation coverage, the sub-contractor’s employees shall become the employees of the contractor. The contractor will be responsible to pay any workers compensation benefits to the sub-contractor and its employees.

Agricultural Industry: Agricultural employers with six or more regular employees and/or 12 or more seasonal employees, who work for more than 30 days, must obtain workers’ compensation coverage for those employees.