by Isaiah Garcia | 7:20 pm

Workmen compensation insurance is a law where the employees of a particular organization get covered for all the injuries that take place at the workplace or the office premises, with a few terms and conditions. So, for every company with a different business type, it is always advised to take insurance in advance for the monetary assurance of the employee, in case of any unforeseen incidents.

Who should buy this insurance?

  • In many state laws, partnerships and sole proprietors are not usually required to buy this compensation, until and unless there are employees in the company who are not the owners/partners/shareholders. Also, many state rules allow the partners and sole proprietors with a choice to make an insurance cover for themselves on compensation. While in other state laws, employees are not covered if the employees/workers are paid on commission, regardless if the workers are contract workers or part time workers.
  • For any organization with business small or large, it is important to have insurance for those workers who strive in making the company’s progress grow every day. Also, the primary responsibility of the employer is to ensure a safe work environment. The next important thing is that the employer is legally liable to any accidents that take place at the workplace. Insurance always comes as a savior to both the employer and employee.
  • Like mentioned, these claims come with terms and conditions. Not every worker who has insurance will get a cover. It purely depends on the incident, mistake, place of occurrence and other factors that drive others to claim it.
  • Regardless of which worker has the insurance and which employer provides it, it is a good and safe way for an organization to handle and manage these kinds of risks. The worker has the power to proceed legally if the organization is liable for the incident where the organization finally needs to end in lawsuits. Therefore, investment on the coverage of workmen compensation helps avoid many risks and gets the worker back to serve the company.

Who sells?

This insurance is not a part of the policy of business owners (BOP). So, this should be purchased as a new or separate policy. Also, every state laws and rules vary in regards to this policy. A few states do have a rule that, all the employers need to purchase this insurance and that it should be from the respective monopoly insurer of the state, which is referred as the state fund. Few states have a choice to choose between the private insurer and the state fund. If in any case a private insurer doesn’t have coverage for a particular business type or model, then they can find it from state fund.


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