Here's What You Should Know About Worker's Compensation As A New Small Business Owner

When you operate a business from your home, you need to know if it is covered under your homeowners insurance policy. Click for more.

Here's What You Should Know About Worker's Compensation As A New Small Business Owner

Here's What You Should Know About Worker's Compensation As A New Small Business Owner

14 June 2022
Insurance, Blog

Starting a new small business is an exciting experience, but there are lots of things to think about and plan for before you open your doors for the first time. One topic that sometimes gets overlooked is worker's compensation insurance (also referred to as worker's comp). Here is what you should know about this type of insurance as a new small business owner:

What Worker's Comp Generally Covers

Worker's compensation insurance is designed to provide financial relief if an employee gets ill or injured while they are on the job. The injury or illness must be work-related in some way to be covered by this type of insurance. So, if an employee has a stroke or other medical emergency at work, necessary treatments and other costs for care would not be covered under worker's comp. The work-related things that worker's comp usually covers include:

  • Medical Treatments
  • Lost Wages
  • Disability Benefits
  • Ongoing Health or Mental Care
  • Funeral Costs

The idea is to ensure that your employees do not end up going into debt just to treat an illness or injury that occurs because of the job they undertake for your company. The specific worker's compensation insurance company you work with can let you know exactly what would and wouldn't be covered so that you and your employees know exactly what to expect.

How Worker's Comp Can Benefit Both Parties

Not only can worker's compensation insurance provide financial relief for healthcare and treatments after an injury or illness, but it can provide compensation to surviving family members if death is the result of the injury or illness. Many workers' comp insurance plans include compensation for permanent injuries and vocational rehabilitation if an employee cannot go back to their job for whatever reason.

Worker's compensation protects you as an owner from being sued for damages, lost wages, and healthcare costs if an employee injures themselves or gets ill due to the functions they perform at work. If an employee were to fall off a ladder while stocking shelves and break an arm or a leg, you would be held responsible for all the medical costs associated with the injury if you didn't have worker's compensation in place.

Who Pays for Worker's Comp?

The employer generally pays for worker's compensation insurance and employees are not required to contribute to the policy costs. This means that you maintain full control over the type of policy that is put into place and what kind of coverage is offered to your employees. It also means that you will be responsible for letting your employees know what their worker's compensation rights are and for filing claims when employees report an illness or injury at work.

Contact a company like Tucker Insurance Agency to learn more. 

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your home business and homeowners insurance

When you operate a business from your home, you enjoy the benefit of not having to commute to a busy office every single day. One thing that you may not have considered is whether your home business is covered under your current homeowners insurance policy. If you have expensive equipment, inventory and files stored in your home, you may need to add a rider to your insurance policy to ensure that you are covered. Find out more about how a home business can impact your homeowners insurance policy and whether or not you are protected as your policy stands today.