Most business owners are aware of the reasons they need to have workman's compensation insurance. However, some other business owners may assume they are exempt due to the nature of their work. It's important to learn more about how the kind of work you do does not matter when and if an employee is injured.
On The Road
Businesses that have one main office and operate mostly with employees selling door to door can be sued for work-related injuries that take place while an employee is off the main office premises. If one of your traveling employees steps off a delivery truck and falls on the steps of the truck, you could be sued for that employee's medical bills and compensation for pain and suffering as well. If you have a fleet of delivery trucks or other types of traveling employees and you do not have workman's comp insurance, checking into how you can get it is vital to avoid possibly losing your business to a lawsuit.
A Quick Errand Can Turn Into A Lawsuit
If you run an office and have only a few employees, you may not think you have a great need for worker's compensation insurance like bigger companies with hundreds of employees do. However, if one of your employees happens to run an errand for your business, just a quick one, and ends up getting hurt along the way, you could be sued for the medical bills that employee sustained during that time. Even if you do not usually run errands every day from your office, it is still an errand that is business related and is still subject to the laws regarding workman's comp if the errand runner is injured.
The Family Company
The small business owner that employs family members may not be required by the law in his or her state to carry workman's compensation insurance. However, in most states, this law only applies to immediate family members like parents and children. If your brother-in-law or distant cousin is working for you and sustains an injury, you could be sued for their medical bills and other compensation for mental anguish and loss of wages. For staying on the safe side in your business finances, always maintain workman's comp coverage, no matter which family member is working for you.
Ask To See Proof From Subcontractors
Just because you hire subcontractors for completing your work does not mean you should not carry workers comp. In most states, any subcontractor could technically be considered your employee while working for you. For this reason, always ask to see proof of a subcontractor's own workman's comp policy before hiring them. If a subcontractor is injured while working for you and is not covered by the company you hired, your workman's comp can help protect you from a lawsuit.