Forget about workers compensation and your life as an entrepreneur might quickly end. Operating a business creates excitement that can cause you to forget about behind-the-scenes legal and regulatory requirements and end up facing fines and other legal expenses. Use the following four workers compensation tips to keep your startup on the pathway to success.
Research the workers compensation requirements for your state to determine what rules, if any, apply to you. Different rules might apply based on the size and industry of your company. Professionals, like those at Bachus & Schanker, know that you should learn about what coverage you need to stay in compliance. You might also want to talk with an attorney that specializes in employment law if you feel uncertain about which regulations apply to your business.
Find an Agent
Start shopping for workers compensation by getting referrals from other business owners to help you find an agent who can connect you with affordable and dependable coverage. Your workers compensation agent can help you understand the requirements that apply to you and provide a coverage quote. The size and dollar amount of your payroll and the work performed in your business can influence the cost of workers compensation insurance.
Understand the Benefits
Workers compensation benefits usually cover the medical expenses that result from a workplace injury or job-related illness. Benefits also include lost income caused by the incident that prompted a claim as well as death benefits that apply to funeral expenses and possible compensation the family of a worker who dies on the job. Your state probably has defined the benefits you must provide. You must also post information that explains to your employees the procedure to follow for making a workers compensation claim.
Your business must create accurate job descriptions for your firm and match them to the appropriate job class using the list published by your state. Resist the temptation to miscategorize the work your employees perform as part of an effort to reduce your workers compensation insurance expense. Also, monitor your payroll expenses throughout the year so you can adjust your coverage as necessary. Review the results for accuracy to avoid unnecessary premium increases if your insurer audits your firm.
Workers compensation insurance helps people who suffer losses due to employment-related incidents. Find out what requirements apply to your company and buy the coverage you need. Make sure you pay the right premium by accurately defining the jobs in your company and reporting your payroll costs. Compliance with workers compensation laws and regulations will give you the needed peace of mind to enjoy your life as an entrepreneur.