Did you know that nearly 30% of Americans are unemployed?
Workers’ insurance protects the employed people against any workplace injuries. It helps them get the right medical attention for the injuries and financial compensation for the wages lost.
What about the independent contractors? Is there any help for self employed?
Freelancers and the independent contractors are at risk of workplace injuries too. Since they have no permanent employment, they risk suffering if they sustain injuries during their contract duties.
If you are an independent contractor, then you have probably thought of this issue. But don’t worry, you can apply for workers’ compensation and protect yourself, just like the employed persons.
Here is everything that you need to know regarding the insurance.
An Overview: Workers Compensation for the Self Employed
Accidents happen. Whether you are a sole proprietor or own a company of more than 1000 people, anything can happen to you. When the accident happens, it’s unlikely that you will manage to take yourself to court.
As you know, the court proceedings can be lengthy, tedious, or even sometimes biased. You might end up spending thousands of your hard-earned cash and your precious working time, too, for something that you could have avoided.
As an entrepreneur, the best thing that you can do is to plan well. Alongside other forms of insurance, you should apply for workers’ insurance for the self-employed.
The insurance helps you to get handy medical treatment and also recover the lost wages during that period. After all, you are a freelancer, and no one would take care of your bills or expenses during that period.
Plus, your firm’s stream of income may slow down when you are injured and add up to your problems.
The coverage can be helpful if:
- You plan to expand your business, meaning that you will add more employees
- You need the certificate to secure contract deals with other firms
- You are concerned about the performance of your business when you get injured
If you don’t have this cover, you should look for it before it’s too late. Even if an accident does not happen, you will be at peace, knowing that you have the right coverage for your business and health.
Benefits of Workers Compensation for Self-Employed
Wondering whether it’s essential to apply for the workers’ compensation insurance? There are many reasons why you should get it. Here are the main benefits.
As a self-employed person, your work might come to a standstill if you sustain injuries. You might end up suffering many losses that could even cause the closure of your business.
The self-employed insurance can provide up to two-thirds of the average wage that you usually get at work. The exact wage replacement benefits entirely depend on your injuries and the rules of your state.
Permanent-Partial Disability Benefits
These benefits are meant for entrepreneurs who sustain semi-permanent injuries. For instance, you may lose your hands or legs in the accident. Those injuries might affect your regular wages, although you will still be working.
In that case, the insurance can offer a lifetime compensation for those injuries which interfered with your usual mode of working.
It’s possible to sustain severe injuries that affect your mind. Since you cannot work when you are mentally unstable, it might be necessary for you to undergo mandatory counseling or rehabilitation. The insurance can help you finance the rehabilitation program.
Medical expenses could include the costs of medication, examinations, and prescriptions, and so on. You should keep a record of all the costs that you incur at the hospital for quicker compensation.
How the Workers Comp Insurance Works
The first step is to find a reputable workers compensation insurance firm. Create a list of all the promising firms and then choose the best after doing your background research.
If you are okay with the terms of the coverage, you will sign the coverage application form. The application should include all the risks which the insurer can cover.
Like the other insurances, you will be paying a specified premium either monthly or bimonthly in line with your insurer’s terms. Should an accident happen and you get hurt at work, then you should contact the insurer immediately. You should also initiate a claim process.
The insurance agent should examine your injuries, damages, and the losses that the accident has caused to your business. Using their assessment results and the evidence you provide, they then offer a quotation of the amount you should receive.
At times, the quoted amount might be very low compared to what you expect. In that case, you may involve a lawyer to help you get what you deserve. The lawyer can help you appeal or negotiate with the insurer for better compensation.
The Costs of Workers Comp Insurance for Self Employed
There are no specific costs for insurance. The amount you pay entirely depends on your field of work. This is because some areas are riskier than others. Some of the businesses considered to be dangerous include construction and plumbing.
The workers’ comp insurance cost may also depend on the insurer, what you want to be covered, and your past work-related accidents. If you have a history of workplace injuries, then you might pay a higher amount.
Nevertheless, you should learn to compare costs before settling on a particular insurer. You should also get the right information to know what you are paying for. Above all, you can negotiate for better deals if you feel that the costs are too high.
Get the Right Help for Self-Employed
You need the right help for self employed if you plan to start your business or you are already managing one. Remember that accidents are inevitable, and the compensation can give you a significant boost in that time of need.
Find a reputable insurer for the workers’ compensation, understand the terms, and make timely premiums. Don’t forget to observe safety precautions at work, too, even when you have the coverage.
Hopefully, you found the article helpful. Please read the rest of the articles in our online magazine to get more life tips.
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