Basics Of Worker’s Compensation Insurance

Worker's Compensation InsuranceWorker’s compensation insurance is a policy that most of the small business owners buy in order to cover the expanses of their workers’ work related injuries. These insurance policies cover all the expanses of workers’ work related injuries like, hospital and medical bills, rehabilitation, lost wages, temporary or permanent disability and even death. The Regulatory Commission for State’s Workers’ Compensation sets the rules for the policy.

Worker’s Compensation Insurance – Determining Premium

On the basis of the estimated pay roll of the insurance policy the premium is determined. Since the type of work assigned to every worker in a company is different the injury risk to every worker is also different. That is why companies generally classify their workers depending on the type of work they do in the company. There are around five hundred such classifications that widely cover every kind of industry works. Depending on the classifications the premium rate is determined. For instance, the premium rate for a convenience store’s WCI is higher than that of a telemarketing firm.

Worker’s Compensation Insurance – The Necessity

If you are running a business and you are wise enough you should buy a Worker’s compensation insurance. Running your business without the policy binds you with the risk of huge fines and sometimes even the risk of shutting down the business. Moreover, worker’s compensation insurance also saves you from huge financial disasters. In case of work related injuries of a worker the medical expanses may be a burden for a small business. So, you should act wise enough to buy a worker’s compensation insurance.

Worker’s Compensation Insurance – The Owner Issue

Being the owner of the company it is up to you whether you want to include or exclude yourself from the insurance coverage. If you are covered you will also get the benefits if you got some work related injuries and if you are excluded you won’t get the benefits. As simple as that.


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