Business owners have many issues to consider in their daily operations, not the least of which is how to handle worker’s compensation coverage.  Most states require a business to have some sort of coverage to help meet its statutory obligations to an employee, should he or she be injured or become sick in the process of working.   Even if a state does not require coverage, it does not excuse a business from its legal responsibility to an injured employee.

Business owners find the issue of worker’s compensation insurance difficult to manage, because there is no one set of rules for how it should be calculated, and because of the time and expense usually associated with managing it.  What are some issues you need to know when obtaining this coverage?

What State Laws Apply to You:  Individual state laws (with a few federal exceptions) generally govern worker’s compensation rules regarding benefits and premium computation.  The laws regarding who needs to be insured, and how to set their premiums, differ from state to state.  You will need to know what state or states’ laws apply to your business.

How to Calculate and Pay Your Premiums:  Premiums and are based on complicated calculations by rating groups such as NCCI and various private insurance carrier’s policies.   As with any insurance plan, there are a tremendous number of rules and accounting issues that apply to premium calculation.  Keeping your business properly insured, but not overpaying for your premiums, is of vital importance. 

Understanding Your Coverage:  Worker’s compensation insurance is slightly different than a regular insurance plan.  While the section that applies to the coverage of your employees’ personal injury claims is not capped, the section that applies to the employer’s coverage for claims is capped.  Understanding exactly how you are liable, and for how much, is essential. 

SourceOne Payroll’s Human Resource Solutions can help your small to midsize business meet the complicated challenge of managing worker’s compensation premiums and coverage.   SourceOne provides accurate premium calculation and payment services through an affordable pay-as-you-go plan.  Their administration benefits give you access to competitive rates and customer support.  Let their professionals ensure that you, as a business owner, can focus on expanding and managing your business, rather than having to focus on managing your insurance issues.