Taking out appropriate insurance coverage for your business is an absolute must. However, there are some areas that business owners neglect when looking at policy options. While you might know that workers’ compensation coverage is mandatory in almost every state in America, plenty of businesses make mistakes when pursuing policy options. Whether you fail to provide ample coverage or neglect to take out a policy for workers who don’t’ fall into traditional employment categorizations, there can be major repercussions involves with making the wrong moves. Consider these tips and gain more perspective on your options.
Understand the Consequences
The first thing you need to do is review the exact regulations of workers’ compensation insurance in your state. Failing to follow the right protocol with workers’ comp can lead to more than one significant penalty. For example, Texas is the only state that does not make this coverage mandatory. Still, this doesn’t absolve you from any of the problems that arise in the event of a workplace accident. Some states also base insurance needs around certain factors. In Georgia, the law requires businesses of a certain size to take out such policies. Other points to consider include:
- Industry your business operates within
- Rate of claims in recent years
- Nature of employees
Make Informed Decisions
By understanding the consequences of failing to provide proper insurance coverage to your employees, you can make decisions that keep your business protected. Take time to review the basics and discover a plan that is right for you.