Are you afraid of workers comp? Savings by evasion of law
Are you afraid of workers comp?
As a small business trying to survive the ups and downs of the construction industry, it can be scary to think about workers comp costs. And for good reason.
The construction industry is one of the highest rating of the 175 industry classification on workers’ compensation premium compare with the other industry.
Take advantage of the safety program to reduce individual and classification-wide injuries and resulting cost. Employers who are represented by an industry-based safety program and who embrace workplace injury prevention can reduce the number and cost of injuries in their workplace and as a result, benefit from lower rates.
To ensure your continued growth, let us help you plan the perfect private health insurance coverage for your business. We’ll take the worry out of workers comp and other insurance issues.
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Not only could employers be fined or jailed for violating workers' comp laws, they could also be sued. If an employee is injured at a company required to have a workers' comp policy, but doesn't, the employee could file a lawsuit against the employer to recoup the cost of medical expenses.
If you work as a general contractor or a subcontractor, you may have to buy workers' comp insurance if the contract you signed requires it. Your health insurance may not cover your medical costs because it's a work-related injury. You're responsible for the fees and any charges for your work-related injury.
Whenever you hire a handyman, it is important to ask for their insurance policy. Your home insurance may not provide you with contractor coverage because it is mainly for personal coverage. If there was any damage to your home by the uninsured contractor, you could be financially responsible for it.
Very much depending on the line of business and the nature of trade, a contractor should consider the following insurance.
|Commercial General Liability||Most contractors should have a general liabilitypolicy or CGL designed for their work field.|
|Professional Liability||Professionals such as CPAs and consultants should carry professional liability insurance, commonly known as errors and omissions coverage.|
|Health Insurance||If you are an employer that is hiring workers, it is mandatory to carry workers' compensation insurance or get additional private health insurance.|
The 'All Risks' element refers to the cover under the contract works section of the policy. In insurance terminology, this means that the policy will cover any loss or damage to the property and/or materials other than certain specific exclusions.
In general, it is easier to prove liability when an injured child has been invited onto a property that contains a dangerous condition. A lesser duty is usually owed to trespassing children. However, a property owner or possessor must warn children if it knows or should know children may be on the property.
Any individual injured while working on a construction site, another party that caused the injury due to negligence, should be held liable.
What is not covered under worker’s comp?
Some things are not covered under this insurance. Injuries from aggressive employee actions, intentional accidents, and injuries that happen outside of the workplace are not covered. The law states that injuries due to fright, stress, or excitement on the job do not have to be covered. Pain and suffering are not covered. An employee may sue for this but they do not have a claim under workers comp. An employee will not receive worker’s comp pay if they are injured due to being under the influence of drugs or intoxicated at the time of injury.
Suspect false worker’s comp claim?
If a person feels that an employee is faking a claim or if they are not injured they need to talk to the insurance company and discuss the situation. The insurance company will then provide the next step.
Is a company responsible under works’ comp if an employee refused to use safety appliances?
If an employee is not wearing safety equipment such as goggles or a hard hap they will still receive compensation but it may be reduced by 25 percent. If the employee knew the safety guidelines and expectations and refused to comply with them even after being reminded by the employer their compensation will be reduced. An employer must provide safety equipment and ensure the employee knows the safety expectations.
When is workers’ comp not required?
While state law may vary there are some instances when workers comp may not be required by law. A sole proprietorship with only one employee does not need this insurance. If there are two or more employees they are going to need this coverage. Independent contractors need to carry their own worker’s comp insurance.
Are family members covered by worker’s comp?
If a business has family members working for them or even helping out they are required to have workers comp insurance. If a person is an employee regardless of relation workers comp is required.
What if a subcontractor does not have worker’s comp insurance?
If they do not have this coverage there will be an additional premium to cover them. If the subcontractor does not have this insurance they can file a claim under the company as long as they are working for them. The insurance company will charge a business for this coverage. This is why many businesses will not work with subcontractors that do not have this coverage.
How to ensure subcontractors have workers comp insurance?
To make sure a subcontractor has this insurance a company or even individual hiring this person for a job needs to verify their insurance coverage. They can ask for a certificate stating the coverage and contact the insurance company to make sure this coverage is still valid and in good standing.
Will, a worker pay for or pay part of the workers' comp insurance premium?
If a company hires a person as an employee they by law do not have to pay workers comp insurance. If a person is a subcontractor or independent contractor they will need to pay their insurance premium.