Purchasing a worker's compensation insurance policy for your business requires careful research and deliberation to make sure you have the coverage you need. Every business has its own unique needs and challenges when it comes to picking the right policy. The following tips can help you avoid some errors so you can make sure you have the necessary coverage.
Tip #1: Make sure you are covered in all jurisdictions
If you have employees in states other than your home state, you will need an insurance agency that has both the licensing and the knowledge to offer policies that meet the requirements of everywhere you do business. Worker's compensation laws vary across state lines, including what must be covered, along with necessary coverage amounts or benefit durations. You can get stuck paying out of pocket if your policy doesn't meet the coverage requirements of the employment location. You can also end up paying fines for not carrying sufficient insurance, depending on state laws.
Tip #2: Know your industry's safety requirements
Every industry has specific safety requirements that must be met, which includes everything from displayed signage to providing specific training and equipment. You may need to update these safety protocols each time you expand your business in some way, such as when adding a new service or piece of equipment. Also, stay in touch with your insurance agent. Many industries also have optional safety training or protocols they can implement, which may provide you with a discount on your insurance costs.
Tip #3: Make sure everyone is covered
Not every policy covers every employee. For example, some policies may only cover workers that have no immediate relationship to an owner. Other policies may exclude seasonal workers or contract workers. In some cases, you may need a different type of liability policy to cover these workers, or you may need to add umbrella coverage onto a standard worker's compensation policy to ensure that everyone is covered. The only way to know for sure is to talk to an agent, since regulations vary by state. Keep in mind, even if coverage isn't required for certain types of workers, that doesn't mean you can't be sued if they are injured. It's still a good idea to have some sort of liability policy just in case, whether it's required or not.
For more help in securing the best worker's compensation policy for your business types and needs, contact an insurance agent in your area.