Workers’ compensation is a type of business insurance in Newark, DE that protects not only your business from financial loss, but it is also required by law in most states if you have employees. Whether you’reestablishing a business, growing a business, or your business is already well-established and successful, it is critical that you understand why you need to buy workers’ compensation insurance as part of your business insurance coverage.
In most states, you need to buy workers’ compensation insurance as soon as you hire each new employee. If you are not in compliance with local laws, you could also face civil or criminal penalties. It’s crucial that you have coverage for all your employees before an injury or illness occurs, so you are not held financially liable. Workers’ compensation coverage typically only applies to events that occur after you purchase a policy.
Consult your business insurance broker and become familiar with your state’s workers’ comp laws. Keep in mind, if your company is headquartered in one state, but employs people in another, you probably need to buy coverage based on the laws of each state in which your employees work. Also, in some states, every business with one employee is required to carry workers’ compensation insurance, but in others, the requirements might apply only to those with two or three employees.