When it comes to workers’ compensation, many are left in the dark about what the term really means. According to the Georgia State Board of Workers’ Compensation, workers’ compensation provides wage replacement and medical benefits to employees injured on the job while providing the employer with limited liability.
In the state of Georgia, businesses with three or more employees are required to offer workers’ compensation. If the business has less than three employees, however, the employer may opt to not carry workers’ compensation if they so wish.
Now that you have a better understanding of the meaning behind the term, you might be wondering a thing or two about workers’ compensation:
I work with independent contractors, and do not have any employees. Am I required to provide workers’ compensation?
Unless the employer obtains a certificate of insurance from an independent contractor, they are considered to be employees for workers’ compensation purposes and may be justified to this coverage.
Can I, the owner, be excluded?
The owner of a corporation or LLC can most times elect to exclude themselves from workers’ compensation coverage. For example, however, as a business owner, the majority of time you spend in your vehicle may be related to work. If an injury or damages were to occur, and were determined to be job related, your auto and health insurance may decline coverage and require expenses be paid by the business. In a situation of the sort, workers’ compensation provides a great amount of coverage for a reasonably low premium.
Although workers’ compensation policies are separate to other commercial insurance policies, it is not nearly as expensive as paying for employees’ health bills or court fees. Discounts may even be provided if businesses meet various criteria. For example, if your business is certified as a drug free work place, you are eligible for a 7.5 percent discount.
With a new insight on workers’ compensation, contact Risk & Insurance Consultants today with more questions at 404-459-5975. Also, visit www.riskandinsurnaceconsultants.com.