Oct 6
Workers’ Compensation and Why Every Business Needs It
Picture it, your business is growing and growing, which means you need to start hiring employees. Before you make your first hire, you will need to get a Workers’ Compensation Insurance Policy. Workers’ compensation is a no-fault insurance system that provides medical and disability benefits for employees who suffer injury or illness because of work performed.
Some questions business owners ask us are, “Isn’t workers’ comp. super expensive?” or “How is workers’ comp. beneficial to my business?” We created some Frequently Asked Questions about workers’ compensation to help you understand how it works, why you need it, and how much workers’ comp. could cost.
1. What does workers’ compensation cover?
Workers’ compensation provides each employee with medical and disability benefits. It can cover accident/injury, illness, ongoing medical care, disability, missed wages, funeral costs, and stress-related injuries.
2. Is it legally required to have workers’ compensation?
Employers are required by law to secure workers’ compensation benefits for their employees, purchased through a licensed Utah workers’ comp. carrier. If you are a Utah business that also employs out-of-state workers, employers will need to purchase additional workers’ comp. for that specific state.
3. Do 1099 employees need workers’ comp.?
Anyone in the direct service of an employer, whether working undocumented or legally, is considered an employee.
Independent contractors, on the other hand, are different. Independent contractors and/or subcontractors are not eligible for workers’ compensation claims against the business for whom they’re working with. Some businesses miscategorize employees into working as ‘independent contractors to avoid workers’ comp. claims. For more information on identifying employees vs. subcontractors, click here.
4. Do I need workers’ compensation for self-employed workers?
If you’re self-employed with no employees, your business insurance requirements depend on where you live. In Utah, there are a few types of businesses that MAY not require workers’ comp. such as; sole proprietorships, partnerships where there are no employees, and limited liability companies where the owners perform the majority of the work.
5. How much does workers’ comp. usually cost?
Like most insurance policies, the cost will vary based on the nature of your business, size, risk factors, and location.
Typically, a small business owner can expect to pay anything from $600 per year to $3,000 per year, depending on how many employees they employ. Keep in mind, as your payroll expenses increase, your premium will also increase.
So, is your business growing, and do you need to hire an employee? Integrated Insurance Solutions will personalize a plan for you and your business. Click on the button below to get more information.
Some questions business owners ask us are, “Isn’t workers’ comp. super expensive?” or “How is workers’ comp. beneficial to my business?” We created some Frequently Asked Questions about workers’ compensation to help you understand how it works, why you need it, and how much workers’ comp. could cost.
1. What does workers’ compensation cover?
Workers’ compensation provides each employee with medical and disability benefits. It can cover accident/injury, illness, ongoing medical care, disability, missed wages, funeral costs, and stress-related injuries.
2. Is it legally required to have workers’ compensation?
Employers are required by law to secure workers’ compensation benefits for their employees, purchased through a licensed Utah workers’ comp. carrier. If you are a Utah business that also employs out-of-state workers, employers will need to purchase additional workers’ comp. for that specific state.
3. Do 1099 employees need workers’ comp.?
Anyone in the direct service of an employer, whether working undocumented or legally, is considered an employee.
Independent contractors, on the other hand, are different. Independent contractors and/or subcontractors are not eligible for workers’ compensation claims against the business for whom they’re working with. Some businesses miscategorize employees into working as ‘independent contractors to avoid workers’ comp. claims. For more information on identifying employees vs. subcontractors, click here.
4. Do I need workers’ compensation for self-employed workers?
If you’re self-employed with no employees, your business insurance requirements depend on where you live. In Utah, there are a few types of businesses that MAY not require workers’ comp. such as; sole proprietorships, partnerships where there are no employees, and limited liability companies where the owners perform the majority of the work.
5. How much does workers’ comp. usually cost?
Like most insurance policies, the cost will vary based on the nature of your business, size, risk factors, and location.
Typically, a small business owner can expect to pay anything from $600 per year to $3,000 per year, depending on how many employees they employ. Keep in mind, as your payroll expenses increase, your premium will also increase.
So, is your business growing, and do you need to hire an employee? Integrated Insurance Solutions will personalize a plan for you and your business. Click on the button below to get more information.
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