Workers' Compensation Insurance: Why and How You Should Get It

You've done it-you've transformed a brilliant idea into reality, and started your own business in Florida. It's wonderful; you don't have to answer to a boss, you can work the hours you want, and you feel truly in charge of your own future. You've even managed to hire some employees, whose efforts will help your enterprise to grow and thrive.

Now that you have people working for you, have you also remembered to get workers' compensation insurance? If you are a business owner and you have employees, workers' compensation insurance is an absolute necessity in 46 out of 50 states. And even though workers' compensation isn't required in four states, it may be if you have employees or other workers located in one of the majority of states that do require workers' compensation insurance.

Why You Need It:

Workers' Compensation Insurance is necessary for numerous reasons, including:

• It functions to provide your employees with medical benefits in the event that they are injured while on the job.
• It also provides your employees with wages should they need to take time off work due to injuries.
• Having it means that your employees must relinquish their right to sue you in the event that they are injured on the job.
• This type of insurance protects you from serious financial loss and stressful legal woes.
• Ultimately, it protects the business you've worked so hard to establish from falling apart due to one or more injuries sustained by employees.

How it Works:

• The ins and outs of workers' compensation insurance vary from one state to another.
• There are state governing boards whose job it is to oversee the various public/private combinations of workers compensation systems.
• The federal government also has its own workers' compensation program, which is subject to its own requirements.
• Twelve states in the U.S. operate state workers' compensation funds, which insure state employees and while serving as models for private insurers.
• Some states, known as "exclusive fund" states, require all employers to obtain their workers' compensation insurance from the state-owned fund.

How to Get It:

• How you should go about obtaining workers' compensation insurance depends on the state you operate your business in.
• Depending on your state, there may be a "state fund" in existence from which you can purchase your workers' compensation insurance.
• You may also be able to purchase your workers' compensation insurance from a private insurance carrier.
• If you choose the latter option, always work with an authorized insurer who is legally able to conduct business in the state where your business is situated. Failure to do this may leave your business vulnerable to worker injury claims that your insurer is not able to deal with.
• Confirm that your insurer is authorized to conduct workers' compensation insurance business in your state by checking with your state's Department of Insurance.

For more information about workers's compensation insurance, call or contact Insurance Wagon today.