Do I need worker’s compensation insurance if I have no employees?
Worker’s compensation insurance is a state law designed to protect the worker in a company. An employer must have worker’s compensation insurance. Lost wages and medical expenses are benefits provided upon being injured in the job. In incidents of death, family members of the deceased can receive benefits (death benefits). The insurance also protects the employer from lawsuits by the suffering worker. Every employer is expected to take worker compensation insurance for his workers to avoid penalties and heavy fines from the central government. It is worth it to have worker’s compensation insurance as it has many benefits compared to its price and cost. Suppose you get injured at work while staying in America. In that case, you can contact the law office of Anthony Carbone to discuss your situation with a Union City Personal Injury Attorney.
Employers with no employees can avoid the cost of picking the worker’s compensation insurance, but it is mandatory when a firm has employees. In many states, corporations and firms must have worker’s compensation insurance if a person in their company performs services that lead to economic growth either in the future or present. Sole proprietors are not left out as they are expected to have the insurance if there is an extra party other than the owner who performs economic-value services.
Buying workers compensation
Business and firm owners have three selections when acquiring the worker’s compensation coverage. The selection includes;
- Paying for a policy from a certified insurance provider
- Self-insurance from large companies and corporations
- An employer can get the insurance cover from the New Jersey Workers Compensation Insurance Plan for the private market.
Cost of the worker’s compensation insurance
The cost of a worker’s compensation insurance varies from one State to another. The compensation rates are set by the New Jersey Compensation Rating and Inspection Bureau. Generally, the Bureau sets the rate using the following criteria;
- The claim history
- Your industry and
- Annual payroll
- And the mode of work performed by the employees.
Any history of accidents or just a demanding job done by the employees can lead to a relatively higher premium. However, a company or firm which seems to have an improvement in their workplace can receive a lower rating cost.
Companies and firms that fail to carry the worker’s compensation insurance are considered a criminal offense to the State. Employers can face severe penalties if they fail to carry out the insurance. They can expose themselves to criminal changes and personal liability. Penalties can be up to five thousand dollars per day for the first ten days without the insurance plan and five thousand every ten days after the starter period.
The cost of getting a worker’s compensation insurance is still a question that depends on many factors. Since the worker’s compensation insurance is a policy regulated by a State, the policy’s cost will depend on the location of the business or company. Businesses with risky activities going on will tend to pay more to companies with fewer risks. You can seek consultation from an attorney from Anthony Carbone for more details about workers’ compensation insurance.