Workman’s compensation insurance. You’ve heard me mention it before. I’m sure you’ve heard lots of people mention it before. I’m going to explain briefly what work comp insurance is, give you a brief overview of it and we’re all going to do additional videos on how you generate the premium for work comp, or how the premium is calculated.
But, to start off, with work comp insurance covers your employees in case they’re injured on the job. So, while they’re working on behalf of you, the employer, if your employees are injured while at your office, at a job location, or perhaps they’re traveling. The point is, if they’re injured while they’re working for you, the employer, they’re covered.
Now, states require this coverage. There’s a mandatory coverage usually called “statutory limits.” Those limits are the minimum insurance required for each state. Talk with your insurance agent. They can let you know what those are.
The point is, though, without this coverage, you will get fined by the state if you have employees who are working without work comp insurance. Or worse yet, if one of your employees gets injured and you don’t have work comp insurance, you can be sued. That’s going to be a big issue if you don’t have the right coverage.
Now keep in mind, as an employer you don’t have to carry work comp on yourself. So, you can save some money there. Many employers actually opt out of the work comp coverage for themselves because they may have coverage through a health plan or some other way to provide for their injuries in case they’re injured while on the job. So, keep that in mind that you don’t need that necessarily if you are the employer.
We’re going to do an additional video on how the work comp premiums are calculated. So, take a look at our Website at Philleo.com to see that additional video.
But again, work comp insurance is designed to protect the employees, paid for by the employer, very important. Have it or the state is going to fine you.