In the state, businesses that have five or more employees are required to have workers compensation insurance. Construction, trades, and mining businesses must have insurance if they have one or more employees and owners need to have coverage on themselves unless there is a request for an exemption. Part-time employees and corporate officers count toward the employee limits. Corporate officers in a non-construction business may exclude themselves but they do still count toward the five-employee limit. For independent contractors and subcontractors that are sole proprietors or partners, they won’t be covered under the policy unless they are considered an employee. An agent at IRM insurance can help you determine if your business needs to have workers compensation insurance.
Workers compensation insurance will cover a number of different things and this is why it’s so important for businesses to have a policy. It will cover medical costs to treat injuries and illnesses. While every business needs to take precautions to prevent these injuries, accidents can happen. If an employee is injured on the job, the business is usually responsible for cover the costs, which can include the emergency room visit, ambulance ride, and medical bills. If an injury forces an employee to miss work, then workers compensation can pay for the portion of the missed wages that the law requires while they are recovering. Policies can be different and either cover a percentage of lost wages or a fixed dollar amount. If an injury is severe enough that an employee needs ongoing care, such as rehabilitation, treatment from specialists, or surgery, then workers comp can cover some of these costs. If the injury ends in death, then workers comp can cover funeral expenses and death benefits. It also covers legal costs if an employee decides to sue over the injury and lawsuit costs can quickly add up.