How to Get Worker's Compensation Insurance

Worker's compensation insurance, sometimes referred to as "workman's comp," is an insurance policy designed to protect an employee in the event of an on-the-job injury. Almost every state requires an employer to offer worker's compensation insurance in some form. Most employees are automatically covered through their company's benefits package without needing to get individual coverage through an outside insurance agent. Read on to learn more.

Difficulty: Easy

Instructions

Things You'll Need:

• Payroll reports
• Insurance agent
• Policy fee
• Application forms
• Accident reports from past years

Protect Your Employees and Your Business with Worker's Compensation Insurance

1. Organize the paperwork you will need to get a worker's compensation insurance policy for your employees. This includes payroll reports that show how much money is paid out to your employees. Insurance companies use these figures, along with their own classification codes, to determine how much a policy will cost.

2. Make copies of accident reports from the past several years, if there are any, detailing injuries employees have sustained while at work. Most insurance applications require you to list this information when applying for a policy.

3. Shop around for an insurance agent with experience in worker's compensation. Make an appointment to get information about rates once you have found the agent who is right for you.

4. Fill out the application forms as directed. Some companies have quote calculators and forms online for your convenience. You may be asked to put down a deposit for the insurance premium when you submit your application package.

5. Open up your company's doors to a field visit, if applicable. A field visit is when an insurance agent comes to visit your workplace and observes its daily operations.

6. Pay your premiums on time to make sure there is no lapse in your worker's compensation policy.

Tips & Warnings

• Double-check to see who is and is not covered by workman's compensation so that you can relate accurate information to your employees. Ask the office in charge of employment in your state for guidelines that you can post at your place of business.
• In some states, small business owners are not required to purchase worker's compensation coverage if they have fewer than a certain number of employees (usually three to five). In the event of a work-related injury, it may be more cost effective for the small business owner to just pay any relevant medical expenses out of pocket. Check to see if this applies to you in your state.
• Neglecting to have worker's compensation available to your employees is considered a criminal offense for which you can be sued. Be sure you have ample coverage for your business.