FAQs About Worker’s Comp

At Insurance Town & Country, we understand the value of keeping your employees protected. That’s why we know that having the right Worker’s Compensation is crucial in ensuring your business can cover payments and expenses if an employee is injured while on the job. Below are some commonly asked questions about Worker’s Compensation and who is eligible to receive it.

Who needs Worker’s Compensation?

Anyone who is listed as an employee with your business and that maintains an employee-employer relationship needs to be covered by Worker’s Compensation.

What defines an employee or an independent contractor?

An employee is any member of your company whose work process you control, whereas a contractor dictates their own work process, excluding the end result or product of the work completed.

With an employee:

  • The employer controls all details of the work
  • The employer supervises the worker
  • The employer provides a workplace
  • The worker is employed for an extended and continuous period of time
  • The worker is paid by the hour or on a salary
  • The worker provides services to a single employer

With an independent contractor:

  • The worker determines all details of the work
  • The worker has a business that is distinct from the employer’s business
  • The worker isn’t supervised by the employer
  • The worker provides their own workplace apart from the employer’s
  • The worker is hired for a specific project or for a limited period of time
  • The worker is paid by the project
  • The worker provides services to multiple businesses

What are some ways to save money with Worker’s Compensation?

You can save money with Worker’s Compensation by minimizing any potential job hazards in the workplace and educating your employees on the proper way to lift heavy objects, particularly if your business is in a warehouse or retail environment. This will lead to less work-related accidents and therefore minimize Worker’s Compensation claims. Also, if you take steps to ensure your company has fewer and smaller claims, you’ll be likely to get the best rates! You can also save money by using an approved list of doctors, taking loss control classes, and even accepting a deductible.

Why is it not financially beneficial to have the owner on the Worker’s Compensation?

In most cases, it is not beneficial to have the owner on the Worker’s Compensation because it can prove to be more costly with less coverage. In this case, disability insurance is a better option.

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