A Few Thoughts on Worker’s Comp
When sitting down with clients and potential clients, an area of insurance that always sparks quite a conversation after General Liability coverage is a discussion about their Worker’s Compensation Insurance needs. Regardless of what type of business you operate, if you have employees, you are obligated by state law to have Worker’s Compensation Insurance. The purpose of worker’s compensation insurance is to provide coverage for your company’s employees’ medical expenses and some portion of their lost wages should they become injured while on the job. Think of worker’s compensation insurance as a state-regulated, no-fault liability insurance in Phoenix which will cover an employee’s medical expenses, rehabilitation services, lost wages or death resulting from a work-related illness or injury.
Regardless of whose fault it is, should one of your company’s employees suffer an injury on the job, they are eligible for worker’s compensation benefits. The same worker’s compensation benefits will also apply should an injury or illness occur in the performance of their job while conducting their employer’s business. In most cases, this type of coverage protects an employer from being sued by an injured worker. Also, it would be very prudent for your company to research and learn what set of rules regarding worker’s comp are in your state’s guidelines, and if your company sends workers into other states, to make sure your carrier is aware of this so they will be covered in those states, as well. After presenting the worker’s comp quote, complete with the possible codes that could be used, we understand the amount of time involved in keeping the employees’ time associated with those codes can be quite taxing on even the best of owners. One thing we hear quite often, in fact, after discussing all the worker’s comp options is clients telling us maybe it’s just easier to hire independent contractors and 1099 them, and that will relieve them of all their obligation concerning worker’s comp.