How to Obtain Workers Compensation Insurance
Workers Compensation Insurance provides benefits for independent contractors and employees of companies within the United States. Coverage includes wage reimbursement --- full or partial, medical and rehabilitation services and, in the event of a fatality, death benefits for surviving family members. The eligibility requirements, compensation and claims procedures are different for each state. If you are starting your own business, learn how to obtain Workers Compensation insurance.
Research your state's Workers Compensation laws. See link in Resource Section. Follow the laws of the state where operations are based.
Gather pertinent information about your company, including the number of employees, company description, any safety practice and procedure checklists, pictures of the facility and employee handbooks or operations manuals.
Contact a commercial insurance agent who has experience with Workers Compensation coverage. Check your local Yellow Page listings, or ask for a referral from one of your business contacts. You can also obtain quotes for coverage online.
Shop around for the best coverage at the best price. If your business is new, rates will be higher until you've established a claims history. Premiums are based upon every $100 of payroll and varies by the type of company and type of jobs that employees hold. Each carrier can use different factors when rating Workers Compensation coverage.
Choose a carrier and purchase your Workers Compensation policy. Follow any underwriting requirements, and provide updates when new employees are added or others leave.
- Depending on the state, companies with less than three to five employees may not be required to purchase coverage.
- Some states also offer the option for an employer to self-insure.
- Incorporating stringent safety practices and going without workplace injury claims will earn you discounts over time.
- Do not assume that you do not need Workers Compensation coverage because your company is very small.
Based in Ohio, Deborah Waltenburg has been writing online since 2004, focusing on personal finance, personal and commercial insurance, travel and tourism, home improvement and gardening. Her work has appeared on numerous blogs, industry websites and media websites, including "USA Today."