Workers Compensation For Sole Proprietors and Partnerships
While most companies are required to purchase Workers Compensation commercial insurance for the employees they hire, sole proprietors and partnerships are not. Most states allow sole proprietors to cover themselves without it. Even some states do not require workers comp coverage for commission employees. The state you live in will determine whether you are an employee or not. By definition, an employee is anyone who works for you or for someone else for a pay. Employees are not just people you hire, but can include minors and even foreign nationals.
Work-related injuries
If you are in the business of hiring people, you should have a solid understanding of the laws surrounding work-related injuries and workers compensation. If you are not aware of these laws, you may be unknowingly exposing yourself to unnecessary risks. A worker’s compensation policy can protect you against a variety of situations, from non-work-related injuries to work-related illnesses. To make sure that your workers compensation policy provides you with maximum coverage, here are some tips for employers.
Time-loss compensation
The amount of time-loss compensation an injured worker can receive depends on several factors. Generally, a single worker should receive 60% of his or her regular wages. Married individuals can expect an additional 5%, and people with dependent children receive 2% more. For a typical work injury, a claimant can expect to receive between 60% and 75% of his or her regular wages. However, it is important to remember that the insurer may stop paying benefits if the employee quits his or her job while receiving these benefits.
Death benefits
The surviving spouse of a deceased worker has the right to receive workers’ compensation death benefits. The benefits are paid to the surviving spouse, but they may also be awarded to other dependent children. While death benefits may be offset by Social Security benefits, a surviving spouse may still be eligible to receive a small percentage of the deceased worker’s wages. This article will give you a general overview of how these benefits are calculated.
Premiums
One of the most important factors when determining workers’ compensation premiums is the type of employment a person has. In most states, insurance companies can apply scheduled credits and debits to an employee’s workers’ compensation claim. However, these credits and debits can be subjective and are often used to manipulate pricing. They can be used to lower the overall cost of a workers’ compensation claim by accounting for special business conditions, such as safety training or hazardous equipment. Furthermore, these credits and debits often undermine approved state laws on filing rates.
Limits on employer liability
You must be aware of the limits on employer liability in your workers’ compensation policy. These are determined by your state’s statutes. In general, your coverage limits are $500,000 per occurrence for bodily injury or disease, and $1 million per occurrence for damage or loss from third-party suits. You can increase these limits with endorsements, which add a premium to your coverage. The coverage limits listed below are those that apply to your state.