Preheader

 

Home Page Facebook Twitter LinkedIn YouTube Blog RSS Feed Header

Auto Insurance Homeowners Insurance Business Insurance Life and Health Insurance Post Header Line

hard hatWorkers’ compensation insurance protects your employees from financial loss due to injuries occurring at work. You know the value of having this coverage. Yet, there can be some gray areas to consider when it comes to defining who has coverage. State laws differ in some areas, so it is important to verify information with your agent. These guidelines can give you a place to start, though.

Who is Your Employee?

An employee is a person who works for your business. It seems like a straightforward question, but there are some areas that can be confusing.

Generally speaking, your state’s laws determine who an employee is. Most of the time, they will include:

• Those who work for you daily

• Leased employees

• Part-time employees

• Unpaid volunteers

• Borrowed employees

• Any type of day labor

In some situations, subcontractors may fall in this area, too. This is less common.

If you have an employee with a unique situation, be sure to talk to your workers’ compensation insurance agent about this employee, including what he or she does and how they work for you.

There Are Some Exceptions

Some states have exceptions in place for covering employees for workers’ compensation. For example, most states will state that independent contractors – those that you do not file taxes for—have no coverage under this policy.

Some states also limit some categories of workers from eligibility. This may include seasonal employees or domestic employees, for example. In some areas, agricultural workers may have less protection. This is only possible when the state’s laws allow for it. Other states only require businesses with certain numbers of employees (say five or more) to buy coverage.

Why It Is Best to Cover Them

If you have someone working for you, but you are not sure if they qualify for workers’ compensation insurance, talk to your agent about it. Discuss what your needs and concerns are. If the employee could have coverage, and has a claim to file, doing so may be a good thing. By providing your employees with access to coverage, you ensure they get the care they need. This may help you avoid a lawsuit. It can also help you reduce risks associated with losing the employee to a company with more protections.

There are limits in every situation. And, the terms of your workers’ compensation policy can play a role in this, too. It’s important to speak to your business insurance agent about any concerns you have about proper coverage for your team.

Posted 9:00 PM

Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011


View Mobile Version
HAPPY 4th of JULY!

Citizens Insurance
Grange Insurance
Hagerty
Hastings Mutual
Michigan Insurance Company
Philadelphia Insurance Companies
progressive logo
west bend logo
acuity logo
fremont logo
Get A Quote
 
       

Home   About Us   Contact   Blog   Partners   Privacy Policy


Lighthouse Group Main Office in Grand Rapids, MI
Mailing Address | P.O. Box 530009, Livonia, MI 48153

Phone: 734.421.9900 | Toll Free: 800.220.5582 | Fax: 734.421.9911

Also serving these Detroit area communities in Michigan: Livonia, Farmington Hills, Ann Arbor, Southfield, Plymouth, Canton, Westland, Northville, Novi, Dearborn, South Lyon & Walled Lake