How to Purchase Workers Compensation Insurance –Insurance is a policy contract between two parties where a party agrees to protect the second party against any kind of loss incurred.
This brings us to the different types of insurance, we have health insurance, life insurance, car insurance, company insurance, property insurance, cycle insurance, etc.
Currently, we have many insurance companies around the world dealing with more than 7 different types of insurance individually. But it is quite unfortunate that most persons, companies, and asset owners are not making use of the various opportunities we have.
In this article, we will be discussing extensively on workers’ compensation insurance and how to purchase worker’s compensation insurance. the guidelines, procedures, and processes will be stated clearly.
What Is worker’s Compensation Insurance?
A worker’s compensation insurance is an insurance policy given to the worker by the company he or she is working for to protect the staff or workers, during health cases like injuries or accidents that occurred during the process of dissemination of his or her duties till the worker returns back to work
Currently, in society, most countries and states have made it mandatory for companies existing in their geographical territory to get workers’ compensation insurance for their workers or staff.
You must note that the worker’s compensation insurance is not gotten directly by the worker for his or herself but by the employer for his staff.
How To Purchase Workers Compensation Insurance
it’s always interesting to know that one can easily get worker’s compensation insurance either online or offline.
However, before you think of getting this kinda insurance, there are certain factors you have to put into consideration such as;
- The wages involved
- The number of workers involved
It’s also pertinent to note that worker’s compensation insurance laws vary in different states or counties.
Most states and counties provide their worker’s compensation insurance, while some is being gotten for its workers by the employer and the other is a group of companies getting workers'(self-insured or insurance group) compensation insurance for their workers
How then can you get worker’s compensation insurance?
Get an insurance company involved
Most companies or employers already have their businesses or companies insured. I must say that not getting your business or company insured is likely putting your company in jeopardy. By jeopardy, I mean great harm or loss.
Yes, one could say that insurance companies do not restore what is lost but at least it gives you hope of having someone pay for your damages or financial loss so you will not lose everything
The very first step of getting worker’s compensation insurance is to get an insurance company involved. you can contact your insurance company either through mail, or telephone or you visit their office and discuss this with them or you can get a local insurance agent.
It is worth noting that any worker’s compensation insurance that is not gotten with a legal and approved insurance company is null and void, therefore it’s not tangible before a court of law.
The Wages involved
Here, sincerity and honesty have to take the base. You have to discuss with your insurance company the wages involved. by wages, I mean the regular payment is given to your workers either daily, or monthly.
Calculating the worker’s wages helps to identify the amount of money that will be disbursed, it also helps to record the income and cash flow of the company’s finances.
The number of workers involved.
As stipulated in the worker’s compensation act of 1998, all employers are to count the numbers of staff that are eligible for workers’ compensation insurance.
There is no minimum limit to the number of workers that should be given worker’s compensation insurance. some states go as far as stating the least to be one(1).
That implies that as far as you have workers under you as an employer, you need to get a worker’s compensation act.
Most companies with a sizeable number of staff or workers do get directly to the insurance company and get to become self-insured.
This helps cuts down the cost of getting insurance outside the company as an external body. You must note that they’re rules and governing laws for one to be self-insured.
Get the contract drafted and sealed
After going through the necessary process. All agreements should be in written form, and transactions with evidential receipts and s should have legal backing.
A worker’s compensation insurance should be included in your worker’s employment letter. Stating clearly the instances it operates. E.g any injuries or accidents that is gotten outside the period of duty is not covered by the worker’s compensation insurance.
Frequently Asked Question
Is there a general rule for worker’s compensation insurance?
no, each state or country has a different workers’ compensation insurance policy. get to know the policy in your state so you will not go against the law.
Can I get a worker’s insurance policy for myself as an employer?
No, you can’t. A worker’s insurance policy only works if you have someone working under you, even if you have one staff is one, he/she is eligible for worker’s compensation insurance. You cant be a boss and still get insurance over your work or company.
What is the approximate cost of acquiring workers’ compensation insurance?
The cost differs in countries states and etc. these factors(location, wages, the risk involved, etc), makes up the cost
Conclusion
It’s obvious that some employers do get sued in court by their employees over a minor case that would have been taken care of by worker’s compensation insurance.
So, I will say that workers’ compensation insurance helps both employers and employees. It helps the workers to get medical attention until they recover and get back to work. this bill will solely be sponsored by the insurance company.
Every employer must check the numbers of workers they deem fit to have worker’s compensation insurance. Workers who are at high risk in the dissemination of duties are liable to get worker’s compensation insurance.
Also, get your insurance policy signed so as to use it as evidence if any parties fail in their line of duty.
you must note that you should get this insurance through a registered and approved insurance company.
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