Workers Compensation Insurance ? Do I Need It and How Much Is It?

Do I need workers compensation insuranceDo I need workers compensation insurance? Workers compensation can be defined as an insurance policy that seeks to protect workers should they get injured or fall sick when performing their duties or when at work. Workers compensation also seeks to compensate workers in the event that the worker has suffered loss and is unable to work for sometime or suffers a fatal injury. In such an eventuality, the family of the worker may receive compensation. If you are a business owner and have employed workers, then you will definitely need workers compensation insurance. It can be taken out through an insurance company or via any state provided programs.

How much workers compensation do I need?

Workers compensation was made mandatory by the government. This is because there were too many lawsuits in litigation and workers and their families did not benefit from the process. It is now mandatory that any business employing workers should take out workers compensation insurance. The amount of insurance a business should take out basically depends on several factors. These include the number of employees the business has employed as well as the nature of work the business engages in. The higher the risks, the more insurance the business should take. Similarly, the more the employees a business has, the more people it should employ.

How much is workers compensation insurance per month?

Workers insurance costs are not fixed but vary from business to business as well as from provider to provider. There are various formulae used to calculate workers compensation premiums, the premiums are calculated as the rate of remuneration per cent, multiplied by the credits available or discounts offered. These rates are readily available from insurance policy providers. The workers compensation policy usually lasts for 12 months from the day it was initiated. Premiums will initially be based on the claims rate that is experienced in the particular industry that a business operates. However, after a couple of years, the premiums will be based on the individual business? claims history. Businesses that have high claim figures will be required to pay higher premiums than those businesses with low claims.

Should I buy workers compensation insurance?

It is absolutely important that every business purchases workers compensation insurance. This is because the business will be spared the cost of compensating workers who suffer harm or injury in the course of performing their duties. It will also help the business proceed even if a worker is at hospital and needs expensive treatment as these costs will be taken care of by the insurance industry. Most states have mandated workers compensation insurance and it is therefore a requirement by law that all businesses that employ workers take out workers compensation insurance. Buying insurance is a much cheaper option than having to pay out workers. Taking out workers insurance is very important for any good business.

Source: http://www.insurance-comparisons.org/workers-compensation-insurance-do-i-need-it-and-how-much-is-it/

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