Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9

Important Information: We’re here to help, click here for important information on our coronavirus response.

Back
Scroll to top

Workers’ Compensation Insurance 101

If you’re starting a business and are unsure of the purpose of workers’ compensation insurance or how to acquire it, then you’ve come to the right place. This kind of state-mandated insurance covers “medical and rehabilitation costs and lost wages for employees injured or fallen ill at work due to working conditions.” Read on to learn more about workers comp insurance.

What is Workers’ Comp Insurance?

For employers, this kind of insurance helps you avoid potential lawsuits filed by employees injured on the job. Workers’ comp covers expenses during an employee’s period of injury or illness and takes “care of their dependents in case of death.”

While it is a state-mandated insurance in a majority of states, the requirements do vary from one state to another. Some states always require it while others only require it depending on the number of people employed by your business. In general, “sole proprietors and partnerships aren’t required to purchase workers’ compensation insurance unless and until they have employees who aren’t owners.”

What Workers’ Compensation Insurance Won’t Cover

Although workers’ comp covers a wide-range of circumstances, there are limitations to its coverage. For example, employers can deny an employee benefits if:

  • drug and alcohol tests demonstrate that individual was “under the influence at the time of the injury”;
  • “the injuries were self-inflicted”;
  • the employee was “violating a law or company policy” at the time of the incident; and
  • the employee wasn’t “on the job at the time of the injury.”

The majority of employees are covered by this insurance but there are some workers who don’t fall under this kind of coverage, including:

  • Independent contractors
  • Business owners
  • Volunteers
  • Individuals employed in private homes
  • Farmers and farmhands

Protect Your Business With Workers’ Comp Insurance from First Bank

At First Bank, we know business owners are always looking for the most cost-effective solution. That’s why First Bank Insurance Services offers you a custom designed insurance program that helps you identify your exposures and protects you and your employees at an affordable cost. To learn more, fill out this form online.


*Investment and Insurance Products are NOT Bank Deposits, NOT FDIC-Insured, HAVE NO Bank Guarantee, NOT Insured by any Federal Government Agency, May Go Down in Value.

———
Sources:

Entrepreneur: http://www.entrepreneur.com/encyclopedia/workers-compensation-insurance

Financial Web: http://www.finweb.com/insurance/state-workers-compensation-insurance-the-advantages-disadvantages.html#axzz3a9fuvRlu

NFIB: http://www.nfib.com/article/workers-compensation-laws-state-by-state-comparison-57181/

Find Law: http://injury.findlaw.com/workers-compensation/workers-comp-benefits-explained.html

Trending Topics

Best Savings Account For Kids

Finding the best savings account for kids doesn’t have to be complicated. Savings accounts can foster good saving and spending habits, and your child will probably enjoy watching their savings grow. First Bank offers...

11 Easy Tips for Saving Money

Saving money is important if you want to be prepared for future financial surprises or hardships and establish peace of mind. But sometimes, finding extra funds to set aside is a challenge. These simple money saving tips...

FHA Loans 101: 3 Major Requirements

If you have a strong understanding of the FHA loan requirements, you’ll experience a quicker and smoother loan application process. FHA loans provide homebuyers of all income levels the opportunity to purchase a home...

How to Switch Banks in Asheville, NC

Choosing the right bank for you is important to achieve your financial goals. If you’re unsure if your current bank is meeting your financial needs or are moving to the Western Carolina area, it’s time to think...

Small Personal Loans – Jacksonville, NC

Finding small personal loans in Jacksonville, NC, can be beneficial when you need a little extra money. Whether it’s for a planned or unexpected expense, a personal loan can help you cover the cost. Find a Small...

Savings Account Interest Rates – Asheville, NC

If you’re looking to save for your future, First Bank is here to help. A savings account can be a useful tool for planned future projects, as well as a means of preparedness for unexpected expenses. We offer some of...

Budgeting Tips for Newlyweds

Work together to spend less, save more, and secure your financial future.

Earn More with Interest-Bearing Checking Accounts

An interest-bearing checking account offers the interest accumulation of savings accounts with the withdrawal and check-writing ease of checking accounts. This best-of-both-worlds combination allows bank...

Find Small Business Loans in South Carolina

It can be hard finding the right small business loans in South Carolina, especially when you’re looking for a new bank. At First Bank, we’re have six convenient locations across South Carolina to provide...

Small Business Line of Credit

Obtaining a line of credit for your small business can help your entrepreneurial spirit take the company to the next level. This line of credit can be a more affordable option than a business loan because you only pay...