How Do You Limit Liability With Workers Compensation Insurance?
Workers’ compensation insurance establishes a limit on company liability by covering those employees injured, disabled or killed on the job. Most state workers’ compensation laws require it. Commonly covered under a Business Owner’s Policies (BOP), workers’ compensation insurance coverage requirements are determined using company payroll and workforce numbers. This coverage is designed to protect both employee and employer liabilities in the event of accidents in the workplace. Most states mandate periodic random audits of business owners to ensure that they are carrying adequate workers’ compensation insurance, so any business with employees should carry it at all times. Gather payroll figures, number of employees, a general business operations description, building square footage and location, insurance history, owner’s Federal Employer Identification Number (FEIN) and Social Security Number, contact information and all other pertinent info before seeking a workers’ compensation insu
