Employment law

Small business workers’ compensation

Just because your business is small doesn’t mean you don’t need to think about workers’ compensation coverage. Failure to carry workers’ compensation insurance could leave you open to paying out-of-pocket for an employee’s medical costs, paying state fines and even lawsuits. Coverage requirements vary state by state.

In Colorado, for example, any business with at least one employee must carry workers’ compensation insurance. The Colorado statute also requires employers, or their insurance providers, to provide a list of at least four medical providers who will tend to the injured employee. Employers must report injuries within 10 days, and any accident that injures three or more employees or results in death should be reported immediately.

One key benefit to carrying workers’ compensation coverage is that most policies do not cap coverage amounts for statutory liability, unlike other insurance policies:

“Unlike other liability insurance policies, it doesn’t have a maximum dollar amount limit to its primary coverage…Once the policy is in force, the insurance company is responsible for all that employer’s claims that arise for workers’ compensation benefits in the states covered by the policy.”—Entrepreneur

Understanding your legal obligation regarding workers’ compensation is key as a small business owner. In addition, understanding the terms of your policy is important. You need to know what your policy covers and what processes must be followed.

Because these policies can be complicated and convoluted, it is helpful to consult with a skilled business attorney who can help you understand the ins and outs of the process.

To learn more about protecting your small business with the correct legal contracts, agreements, insurance, intellectual property and more, contact EmergeCounsel