My name is Eric Bowman, and if you have questions about insurance, this is the blog you need to read. I was always confused when I had to purchase insurance. I would either end up paying for insurance I didn't need or I wouldn't buy the right policy. I finally decided that I was going to learn all I could about insurance policies so that I would understand exactly what I was buying. Now, I am completely satisfied with my insurance and the coverage is just what I need. I realized that there are others who are probably just as confused as I was, so I am writing this blog to help others get the best insurance for their needs and budget. I hope that my blog gives you the information you need to make the right choices when purchasing insurance.
Are you required to have a workers compensation insurance policy for your business, and you are feeling a bit confused about it? If so, you likely have the following questions about buying a policy.
Are You Responsible For Subcontractor Workers Compensation Insurance?
Many people do not understand how workers comp insurance works when you hire independent contractors to work for your business. Workers compensation insurance must be purchased by either you or the subcontractor, so it is important to know if your subcontractors have their own workers compensation insurance policy.
For example, if you work in construction as a project manager and primarily handle subcontractors to work for your business, you need to know if those subcontractors are covered. If you are subcontracting another business, it is likely that the workers are employees of the business and are providing workers compensation insurance. However, you should never assume that is the situation. Always ask to see proof of workers compensation insurance when working with another business.
However, if you are hiring an independent contractor directly, it is likely that they do not have their own insurance. This includes someone that you are hiring for day labor or an individual that is freelancing. In this situation, you'd need to cover that independent contractor under your company's workers compensation insurance.
What Happens If You Don't Buy Workers Compensation Insurance For A Subcontractor?
It's important to know that your workers compensation insurance can be audited at any time, which is when your workers compensation provider wants to verify the insurance that you have for the people that are working for you. If it is discovered that you had an independent contractor working for you that wasn't insured, you will then be required to pay for their workers compensation insurance for the entire year. That can result in paying a large fee all at once.
What Benefits Do Employees Receive With Workers Compensation?
You should view workers compensation as a way to protect your business from an unforeseen accident. This is because the insurance provider will pay out benefits to any covered employee that is injured on the job. This includes their medical costs associated with the injury, their lost wages from being unable to work, and any additional services that they need to get back to work after their injury. In addition, your business is protected from the expenses associated with a workers compensation-related lawsuit, which can be costly.
Contact an insurance agency to get started with workers compensation insurance today.