Questions on Workmen's Compensation Insurance

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    Is My Company Required to Carry Workmen's Compensation Insurance?

    • According to the Worker's Compensation Lawyers website, just about all company types are required to carry workmen's compensation insurance, no matter how large or small the business. In fact, even if there is only one other employee -- besides you -- you have to carry this coverage. The only exceptions to this are farming companies or if you are the sole employee of your company. The specifics of coverage vary depending on the state in which you do business.

    What Does Workmen's Compensation Insurance Cover?

    • This type of insurance covers wages lost from a work-related injury as well as any medical expenses associated with the injury. These medical expenses might include initial visits, follow-up appointments, rehab services, prescription medication associated with the injury and any other expense relating to the injury. Workmen's compensation even pays out in the event of death on the job.

    How Are My Workman's Compensation Premiums Determined?

    • Workmen's compensation insurance premiums vary between companies, depending on the classification under which your business falls. For example, your premiums are likely to be higher if your company engages in hazardous practices routinely. Examples of these professions might include electricians and fumigation specialists. The company's current safety record is also a factor in determining premiums for this insurance type.

    Are All Employees Covered?

    • Anyone who is officially employed by your company is covered under your workmen's compensation insurance. Contractors are not part of this equation, however, and so are not covered under your policy. It is important to ensure that they are classified in your company records as such. This is why many companies prefer to work with contractors or consultants; they don't have to offer a full range of benefits and aren't required to cover them for worker's comp.

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