What is Workers’ Compensation Insurance for Small Business?
Workers’ Compensation Insurance protects employees who get injured or become ill while working. States mandate that small business owners carry this insurance if they have employees. This rule safeguards both the business and its workers.
Also known as workers’ comp, this no-fault system guarantees employees receive benefits, no matter who is at fault for the injury. For small businesses, this coverage is essential for staying legally compliant and protecting their team.
What Does Workers’ Compensation Cover?
State laws regulate Workers Compensation Insurance, with slight differences across regions. Typically, this insurance offers the following benefits to employees who suffer from a work-related illness or injury:
Medical expenses
Lost wages
Disability benefits
Funeral or cremation
For that reason, workers compensation insurance can sometimes help cover the cost of retraining employees for new jobs if they can’t go back to their old roles. If the injury leads to long-term disability, it may also offer extended benefits.
What Is Not Covered by worker’s compensation insurance?
- Injuries caused by intoxication or drug use
- Injuries to independent contractors
- Employee injuries that occur due to deliberate safety violations
- Claims made after an employee has been terminated
How much does Workers Compensation Insurance for small business cost?
The cost of Workers Compensation Insurance for small businesses can vary. Therefore, factors like your industry, the size of your payroll, and the number of employees all affect the price. Businesses in higher-risk industries may pay more, while those with fewer employees might pay less. Generally, Gild Insurance customers spend about $70 per month on this coverage. This makes it an affordable option for many small businesses.
Get worker’s compensation insurance!
Your Gild Insurance Agent is here for you. We will make sure you get the right business insurance for your business. For a free, online quote, try out Gildber! Gildber will compare workers comp providers. Offering you a fast, hassle-free option for an online business insurance quote!
To dig deeper, visit our Workers’ Compensation Insurance FAQs and blog, The Gildfitter.
