The purpose of workers compensation insurance is to offer replacement for wages and take care of medical benefits in case of an injury or any negligence. The tradeoff that take place between assured and lack of recourse as well as limited coverage is referred to as the compensation bargain. These plans and regulations may differ among jurisdictions. These compensation can be made as weekly payments in place of wages and take care of any economic loss, medical expenses, and benefits payable to the dependents of worker. Earlier, employer negligence was often not an issue in these cases and there was no compensation plan for any damages for pain and suffering caused to the worker for employer negligence.
In some US states, like California, the law requires the employers to have workers’ compensation insurance even if they have even only one employee working with them. Even if you don’t have any employees and are a roofer you are still required to take out the insurance. Therefore, it is seen that even the sole owners of business take out the compensation coverage. However, in some cases it may get optional. But if you have even a single employee, even a temporary one, the law requires that you get the coverage.
All legally defined employees of the company or business are included in the policy unless they are the sole owners of the firm. These include officers and directors. To make things more clear, consult the insurance agent or broker in your area regarding the specifics of your situation. Make sure you are getting the workers compensation insurance from a licensed insurer, who is authorized to operate in your state.
Get the insurance from a licensed insurance company and learn about the legal requirement for the insurance in your state. The Compensation premiums can be complicated and therefore, make sure you understand every aspect before buying the policy. Make sure that you have the right information on the business, wage records and any other obligations as an employer. In case your worker is injured, report the injury, and help the worker to return to work. Cooperate with him and the other service providers.
It is compulsory for all employers to take out the worker’s insurance. However, the definition of worker will vary slightly for in each state, and therefore if you are not very sure, ask an experienced and reputed insurance provider about the details and the requirements.