As a business owner, you understand risk, and accidents happen. If you have employees working for you, it is your responsibility, and required by Rhode Island law, to ensure that they have protection in the event that they are injured on the job. Workers Compensation insurance not only protects your employees, but also the financial future of your business.
At Advanced Insurance Solutions, we understand what types of risks you face as a Illinois business owner, which is why we take the time to consult with you on a variety of business coverage options to ensure the best coverage for your specific industry.
Workers compensation generally covers:
•Loss of Wages
What is Workers' Compensation Insurance?
Workers' comp insurance is a safety net that protects employees and employers in the event a worker is hurt or becomes ill as a result of duties performed on the job or while at work.
Workers' compensation insurance is a win-win. Injured employees can get paid for the medical care they need, and will not suffer from lost wages while they recuperate, and employers don't get sued for the cost of medical expenses.
Workers' comp does not cover employee injuries or illnesses that occur when an employee is not acting within the scope of employment. An example of this may be a person who suffers an injury on their day off while helping a friend move, or a person who suffers a joint injury after work while exercising at their gym.
Who Needs Workers' Compensation Insurance?
Workers' compensation insurance is one of the only mandatory business insurances that most states are legally required to carry. Your worker's comp requirements will be determined by the laws of the state in which you operate, but generally most businesses are required to carry coverage at the time they hire their first employee. Failing to carry this coverage when required can lead to fines and potential lawsuits if an employee is injured on the job.
Keep in mind that misclassifying an employee in order to avoid paying for workers' compensation insurance can be a costly mistake. Be sure to know the difference between an independent contractor and an actual employee to avoid facing fines for not carrying workers' compensation when you are supposed to.