Workers’ Compensation Insurance for Startups

Starting a new business can begin an exciting new chapter in your life. Your career and lifestyle may never be the same after this moment. However, while dreams and aspirations are inherently present in your mind, you must also leave time to think about possible mishaps. Regardless of your dedication to safety and caution, workplace injuries are often inevitable, making workers’ compensation insurance necessary.

What Is Workers’ Compensation Insurance?

Although startups may have limited resources, insurance is not an area where you should consider cutting corners. In addition to providing critical financial security in the aftermath of various accidents and errors, you may need coverage to fulfill legal obligations. Workers’ compensation insurance can help address both of these needs, as you can help manage employees’ work-related ailments while also complying with relevant requirements.

When Is Coverage Required?

In most states, workers’ compensation insurance is legally required for many employers. Texas is the only state that does not have laws requiring coverage; however, even in the Lone Star State, certain mandates may exist. For example, if your startup competes for contracts with government agencies, you’ll need workers’ compensation insurance to be eligible. Even if you’re not subject to official obligations, this type of policy should be a top priority, as failing to carry it could limit your prospects, jeopardize your staff’s health and adversely impact your attraction and retention.

What Should My Policy Cover?

Workers’ compensation insurance policies may vary, but your startup should generally look for a policy capable of rendering aid for the following:

• Medical bills

• Wage replacement

• Disability benefits

• Vocational rehabilitation costs

• Death benefits

Additionally, you should check that your policy includes employers’ liability coverage, as employees who are injured or become ill on the job could sue your business. In such situations, especially as a startup, the resulting legal costs and reputational harm could snuff out your dream before it can blossom should you lack coverage.

We’re Here to Help

Contact Quality Insurance Services in Irving, Texas, today to learn more about workers’ compensation coverage for startup businesses or to get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.