When you are the owner of a business or when you are a part of an industry, you need to keep an eye on a number of factors. The security and safety of your employees being foremost. Injuries are likely to happen in any industry which require manual labor, like construction, or manufacturing as workers work with heavy tools, machinery, and are exposed to different elements.

As the owner, you want the best for your workers. That's why owners choose workers compensation insurance as the best option. This way, your worker is not neglected and they can be at ease knowing they will be treated well. This also saves the owner from being sued due to negligence. However, there are 5 things which need to be considered before you purchase this type of coverage.

How Workers Compensation Can Save Your Business

Many business owners hesitate when it comes to providing their workers with workers compensation insurance, simply because of the premiums they’ll have to pay from their pocket. Those who do this do not realize that just because there hasn't been any injuries in the past, does not mean that there won’t be any in the future. If a worker gets injured while at work and you do not give them the compensation they require, the worker has every right to sue you as the owner of the business for negligence. That’s not all, the worker can sue you for more that the amount of compensation. Let’s say the compensation amount is $1,000 and the worker decides to sue you for $25,000 – you could potentially have saved $24,000 by providing the compensation without letting the situation go too far.

Know the Rules and Know Policy

Workers compensation insurance policies, rules, and amount vary depending on the industry and the type of work which they do. Let’s assume that an employee receives a compensation of $500 for carrying sacks from one place to another on their backs, whereas an employee who handles heavy machinery gets a compensation of $1,000 as they are open to more serious injuries. Just like that, it is important for you to know how much the amount of compensation should be. Keep in mind the industry and line of work and take considerations.

Liability Coverage

The section for liability coverage has a certain amount which is specified in the insurance policy. However, you must be aware of what the rules of the states are as well, as some states exclude employees from certain types of coverage. The first step in such situations is to learn what the law of the state is for the employee. If the employee is residing in another state, they will be under the state law of that particular state not the one which the owner resides in. Secondly, you will need to provide funds accordingly to the law of the state in which your industry falls under. Just to be on the safe side, make sure you give your employees all the safety equipment which they require, as well as training from experts so that such a situation can be avoided as much as possible. 


Have additional questions about workers compensation? Give Bob and Harriet Kipper a call at Kipper Insurance Agency (760)471-2200! They'll be happy to answer all of your questions.

Posted 12:12 PM

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Kipper Insurance Agency of California, Nevada & Arizona
Carlsbad, CA 92009
Phone: 760-471-2200
Fax: 760-856-4071
License#: 0E67716

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