Do You Need Workers Compensation Insurance?

Workers compensation insurance covers work related injuries and diseases. Workers compensation laws vary from state to state. Generally if you have more than 5 employees, you are required by law to have workers compensation insurance. This minimum number of employees can be more or less depending on your state law.

Workers compensation insurance

As an employer workers compensation insurance can protect you from lawsuits and claims from work related accidents. It will pay for medical care and treatment for the injured employee and also compensate the injured employee for lost income. Workers compensation insurance covers injuries at the work place. Workers compensation insurance also covers injuries suffered by the employee outside the work place while on work such as a delivery man being injured while delivery goods to a customer. Even occupational and work related illnesses and diseases are covered by workers insurance. If the employee dies as a result of a work related injury or disease, the employee’s surviving family members will be paid death benefits. A worker is eligible for worker compensation insurance benefits from the first day of work. Workers compensation insurance will make payments to the injured employee irrespective of who is at fault or whose is responsible for the injury or diseases. In exchange for the benefits received under the workers compensation insurance, the injured worker must agree not to sue the employer for the injury or disease.

Why you need workers compensation insurance

First of all in most cases you must have workers compensation insurance because you are required to have workers compensation insurance by law. Even if you are exempt by law from having workers compensation insurance, having workers compensation insurance can protect you from claims by employees injured on the job or suffering from job related illnesses or diseases. In many states the law requires that employees of a subcontractor be provided with worker compensation insurance. In such states, the general contractor is responsible for providing workers' compensation benefits to the uninsured subcontractor's employees even if the subcontractor is exempt from having workers compensation insurance. So if you are a subcontractor working for a general contractor, the general contractor will require you to have workers compensation insurance.

Exempt employees

Certain workers are exempt from workers compensation insurance requirements. The exempt workers also vary from state to state. Generally the following workers are exempt:

Workers engaged in causal labor performing work that is not done in the usual course
Domestic employees
Agricultural employees
Commissioned Real Estate Agents
Officers of the clergy
Athletic or sports contest employees
Officers of non-profit corporations

Getting legal help

Consult with an experienced workers compensation attorney to know if your business requires workers compensation insurance. The attorney can advise you on the benefits of having workers compensation insurance.

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