How To Shop For A Worker's Compensation Insurance Policy
Running a small business can be immensely rewarding. However, there are many things you need to stay on top of. You will need to research and obtain all the necessary permits and licenses that will allow you to do business lawfully. Things get even more complicated if you hire employees. If you have at least one employee, you're legally required to purchase worker's compensation insurance that will benefit your employee if they get sick or injured at work. Fortunately, navigating worker's compensation insurance doesn't need to be difficult. Here are four things you should do when shopping for a policy:
1. Research well.
Before buying a policy, you should know exactly what your state law requires. You may be obligated to provide a certain level of coverage for your employees, and this amount may change depending on the number of employees you hire. Find the applicable laws for your business's location and make note of all the requirements. This will help you make an informed decision when choosing a plan.
2. Speak to an insurance broker.
If you're totally lost, an insurance broker can provide assistance. A broker will find the best deals on worker's compensation insurance. They can lay out the pros and cons of each policy and help guide you in your decision. An insurance broker will charge a fee for their services, but you might find the expense worthwhile if it gives you extra peace of mind. In some cases, insurance brokers can help you find better deals than you would be able to secure on your own.
3. Compare price quotes.
Before making any purchasing decisions, you should check out all your options. Find a list of insurance providers that you're interested in. Most of the major insurance providers for homeowners and auto owners also provide worker's compensation insurance. Contact each insurance provider and speak to a representative. They will ask for some basic details about your business, and using the information you provide, they'll be able to give you a worker's compensation insurance quote. Compare insurance quotes so you can get the best value for your money.
4. Read the fine print.
Make sure you know exactly what you're getting when you buy worker's compensation insurance. Read the forms you're given before signing everything, so you know exactly what your policy does and doesn't cover. If you're unsure about any of the terms, don't be afraid to ask questions. It's always better to be informed.