Once you start employing people in your business, you are obligated to take out workers compensation insurance to cover potential work-related injuries or accidents.
It’s worthwhile for both employers and workers. Workers comp is ‘no-fault’ – meaning injured workers do not need to prove their employer was negligent to claim compensation. This type of set-up also greatly reduces the risk of litigation for employers.
The insurance cover may include income replacement, medical and rehabilitation costs, permanent disability payments, death benefit and funeral costs, and return-to-work plans.
Generally speaking, the cost of premiums will be calculated as a percentage of annual wages cost. However, the rules for workers compensation are set by state governments and may differ between regions.
To find out more contact your Reliance Partners broker.