What Does Workers Compensation Cover?
Workers comp provides coverage to business owners and employees for work-related injuries that might occur from their occupation or employer negligence. It provides coverage for medical expenses, lost wages, rehabilitation and death benefits, should an employee pass away on the job.
Which Types of Businesses Need Workers Compensation Coverage
If your business has 3 or more employees, you are required to carry workers comp. Premiums are based on class codes and payroll. Class codes are based on the nature of work each employee performs. The class code reflects how the premium is generated. Each employee is rated specifically on the type of work they perform for the business.
Officers of a corporation or members of the LLC can exclude themselves from coverage. This would lower the premium because their payroll is not included. However, this excludes them from obtaining any coverage under the policy.