To effectively run a business, no matter the size, you need workers’ compensation coverage. In fact, if you do not have it, there may be a penalty for not having workers’ compensation insurance. Here is what you need to know.
The Importance of Workers’ Compensation Coverage
Most states require that businesses have some type of workers’ compensation coverage. There are exceptions, dependent on how many employees a business has and what state you are in. Workers’ compensation insurance is a protection for workers who suffer injuries on the job and likewise protection to businesses. If you have workers’ compensation coverage, then an employee cannot sue you for injuries or illnesses that he or she received while on the job.
The Fines for Not Carrying Workers’ Compensation
The experts at Caitlin Morgan Insurance Services warm that failure to carry workers’ compensation coverage can result in fines between $1,000 and $10,000. This is significant for any employer to have to pay. The cost of workers’ compensation benefits represents about only 2% of a business’s operating costs.
To avoid fines and lawsuits for illness or injury, it is always better to have workers’ compensation coverage. It will cost your company less in the long run to have coverage that protects your employees and protects your company.
Running a business requires you to have the right kind of insurance. You probably already know that you need general liability, property insurance, and workers’ compensation (if you have employees). What you may not realize is that you need a professional liability policy as well. This professional liability insurance definition will help you understand why.
What Is Professional Liability?
This type of coverage is essential for any business that could be held liable for a problem a customer has related to service. This could mean that someone believes you committed medical malpractice or that you’re a therapist who gave bad advice. Regardless of the situation, you’ll need this policy to help you should a lawsuit occur.
What It Covers
A professional liability policy covers a range of situations. In addition to negligence or inaccurate advice, it covers you if you’ve been accused of misrepresenting your products or services or if someone claims you violated his or her good faith by doing an unfair deal.
When you do decide to get professional liability and other policies to help you protect yourself, your employees, and your business be sure to hire a reputable insurance agency that is used to the industry your business operates in. Look for strong references and verified licenses, such as the insurance provided by Axis, before signing on the dotted line.
When searching for insurance for accountants, it may be hard to figure out what exactly you need. Working with an insurance company which focuses its coverage for accounting businesses can help with narrowing everything down and getting the exact coverage you need. There are a variety of insurance types and liabilities that should and can be covered, so keep in mind your likely risks and how to protect from them.
Who Can Get Accountant Coverage?
Financial advisory and handling can be a risky job and is a part of a handful of businesses and professions. If your work can lead to the financial loss of someone or a business due to acts of negligence and inaccuracy, then insurance for accountants may be ideal for you. This can include:
Business or Management Consultants
What Policies Do You Need?
While every business is different, there are a few insurance policies which will benefit any accounting or other financial services. Professional Liability may be the most important, as small mistakes can lead to huge losses and lawsuits. Others to consider are:
Employment Practices Liability Insurance
Other policies may be more unique, depending on if you are stationed out of a building that’s at risk of weather disasters, for example. This is why working with insurance companies to get all the best coverage can help you in the long run.