| The basics of workers compensation | | | | Options are Available to Small Businesses in |
| insuranceThe thing most small businesses most | | | | Search of a Workers Comp Policy? Surprise again, |
| commonly overlook about workers comp | | | | things are going to get a bit more complicated. |
| insurance is this: they need it. Unless you're in | | | | Each state has a regulatory body that monitors |
| Texas , that is. The other 49 require small | | | | workers compensation insurance. Most are |
| employers to cover their employees' lost wages | | | | regulated by the National Council on Compensation |
| and/or medical expenses in case they're hurt on | | | | Insurance. Others have state-specific organizations |
| the job.Different states have different coverage | | | | that serve the same purpose. N. Dakota , Ohio , |
| requirements and mandate what percentage of | | | | Washington , W. Virginia and Wyoming deliver |
| an employee's salary must be paid in the case of | | | | workers compensation insurance through a |
| work related injury. Also, some states allow small | | | | monopolistic state fund.If you find yourself in one |
| businesses of a specified size to self-insure their | | | | of the five states with a single fund you're |
| workers comp. This means that if a small | | | | finished shopping for a carrier. You will however |
| business is small enough it may legally opt to pay | | | | need to purchase your employer liability insurance |
| for claims directly out of pocket. So if you've only | | | | through a separate commercial insurer.If you find |
| got a handful of employees it might not be | | | | yourself in one of the other 45, you usually have |
| necessary to actually purchase a policy from an | | | | a choice among the nation's largest insurers. |
| insurance company.The confusion doesn't stop | | | | Liberty Mutual, Travelers, Kemper and The |
| there. Some states don't require coverage for | | | | Hartford are the most common.If the big name |
| certain types of employees. Often the owner of | | | | insurers don't get your fancy then you may still |
| the business doesn't need coverage as well as, | | | | have two more options: self insurance, as |
| unpaid volunteers and domestic | | | | mentioned earlier, and state insurance pools. State |
| employees.Variation in Small Business Workers | | | | pools usually attract the companies that are too |
| Comp Policies Although there is a lot of variation | | | | risky for big name insurers. This is typically a last |
| from state to state, workers comp packages are | | | | resort option for companies that can't get |
| fairly standardized from state to state. Nearly all | | | | coverage anywhere else.Nearly all of the states, |
| basic packages cover: medical treatment, | | | | 47, have the option of self-insuring. This option |
| lost-wages and rehabilitation. Liability coverage is | | | | however requires the employer to assume all risk |
| also fairly common and protects the policy holder | | | | for work related injuries. |
| from those pesky ambulance chasers.What | | | | |