When Do You Need Worker’s Compensation Insurance?

Worker’s compensation protects your business from serious financial loss and is mandatory by law in some states if you have employees at your establishment. Having worker’s compensation insurance provides much-needed protection to you and your employees against financial emergencies. It assures the injured workers that they will receive their lost wages and the necessary healthcare regardless of their fault in the accident. It further protects employers from expensive lawsuits for on-the-job injuries.

There are some of the best companies in New Mexico providing workman’s compensation insurance. You can reach out to them to get worker’s compensation insurance for your business at the best terms. Whether you are a well-established business or just starting, it’s crucial for your business’s safety and growth to know when to buy worker’s compensation insurance from a reliable provider.

What does a workmen’s compensation policy cover?

Having workmen’s compensation insurance provides coverage against many significant factors. It provides compensation to the employee who got bodily injuries in an accident caused due to employment. It also provides coverage to employees for medical treatment of diseases caused or aggravated due to working conditions at the workplace. It also includes the death of employees caused due to hazardous working conditions. Partial or complete disability caused due to employment of the employees is also covered in the worker’s compensation insurance.

The common exclusions for workmen’s compensation insurance include the following:

• Injuries caused due to war, invasion, or other perils unrelated to employment.
• Injuries that don’t result in total or partial disability of the employee for a period exceeding three days.
• Accidents are caused due to employees being under the influence of drugs or alcohol.
• An accident was caused due to employees’ disregard for safety protocols.

Who should get workmen’s compensation insurance?

If you are self-employed or a sole proprietor or don’t have employees, you are generally exempted from purchasing worker’s compensation insurance, even for yourself. However, some businesses require the independent contractors they hire for any project to carry worker’s comp insurance to reduce their liability.

You can research your state’s requirements for workmen’s comp insurance. If worker’s comp is required for full-time employees in the state, then it is also likely to be required for part-time employees and seasonal employees as well. Depending on your state’s definition of employees, all the employees might need worker’s comp insurance, including the subcontractors.

Conclusion

Whether or not worker’s comp insurance is mandatory in your state, there are many benefits of buying worker’s comp insurance for you and your business. You are more likely to benefit from it, considering the odds are costs of insurance premium is far less than the medical expenses you will have to pay for your or your employee’s medical bills for getting injured at work.