Worker’s Compensations Frequently Asked Questions
As a business owner working in and around Farmville, VA, you’re required by law to carry worker’s compensation insurance, and the Gantt Agency can help! But what exactly is worker’s compensation and what does it cover? Is there any way to lower your premium? What happens if you’re not covered? We answer all your pressing questions below:
Top 5 Worker’s Compensation Questions
Worker’s compensation is a necessary business expense that can protect employers and employees from financial loss resulting from a wide range of events, including moving and handling equipment, falls, car accidents, and more. It’s important to fully understand this insurance and to make sure you’re adequately covered.
Who Needs Worker’s Compensation Insurance?
While a couple states make worker’s compensation optional, it’s required by law in most states, including Virginia. The Virginia Worker’s Compensation Act requires all businesses with at least three or more regular part-time or full-time employees must carry worker’s compensation insurance. This means that if you run a family business and you and your spouse are the only employees, you may not have to have coverage. Likewise, if you hire only freelance employees, you may be exempt (Or, you may not, depending on who is controlling the work and where the work is performed. If the work is performed onsite, it’s best to have worker’s comp even if your workers are designated 1099 contractors.)
In most situations, if you hire anyone else for any reason, including seasonal and temporary employees, you need to have worker’s comp.
What’s Covered by Worker’s Comp?
Worker’s compensation is a mutually beneficial policy that protects employees from financial loss while protecting employers (you) from liability. Worker’s compensation insurance can help cover medical bills, lost wages, ongoing care and treatment, legal expenses related to lawsuits, settlements for employee injuries, and even funeral costs in the unfortunate event of death as the result of a work-related accident or illness.
What’s Not Covered by Worker’s Comp?
While worker’s compensation is designed to be a catch-all policy that covers a wide range of accidents and other events, there are a few specific circumstances that may be excluded from your policy. These include accidents that result from worker intoxication, injuries resulting from a fight an employee started, and intentional injuries (ie insurance fraud.) For a full list of excluded events, check with your insurance agent.
How Do I Know How Much Worker’s Compensation Coverage I Need?
Your insurance agent can help you tailor the right coverage for your business. Factors that affect your desired coverage limits and your premium include the number of employees you hire and the type of work you do. A small office with six employees will have much lower coverage requirements than a manufacturing plant doing heavy industrial work with sixty employees.
How Do I Get a Worker’s Compensation Policy?
The best way to get a worker’s compensation policy that’s accurate and adequate for your business operations is to work with a licensed and registered insurance agent. The commercial insurance specialists at the Gantt Agency will work with you to customize a policy and have your Farmville, VA business protected in no time.
Need a worker’s compensation policy? Contact us and get started today!