Workers’ compensation insurance is a type of insurance that every company needs. If you are just starting your business, you might be interested in learning about how investing in workers’ comp insurance will benefit your business as well as your employees. Below are some answers to these questions.

What Is Workers’ Compensation?

Workers’ compensation insurance allows employees to receive benefits if they are injured while working. It also covers things like lost wages, medical costs, rehabilitation, and certain diseases caused by repetitive motion. By having this insurance, the employee agrees that they will not take legal action against the business in return for the assurance that they will be taken care of in case an accident happens.

Why Does My Business Need It?

Aside from the protection both you and your employees get from workers’ compensation insurance, there are other reasons why you probably need it for your business. Most states require businesses with one or more employees to have this insurance. Failure to comply with the state regulations could result in heavy penalties. Potential employees also might not consider working at a business that has no workers’ compensation insurance. 

How Much Does It Cost?

The state workers’ compensation board is responsible for determining the cost of the insurance. They use a formula that takes into account the “risk classification,” or difficulty of the specific job, and how much the employee makes.

If you are starting a new business, don’t hesitate to call Mutual Underwriters for help with your business insurance needs. With locations in Honolulu, Waipahu, Maui, Kona, and Hilo, HI, they have been offering customers exceptional insurance packages since 1958. To take advantage of their great service, give them a call at (808) 532-2888 or visit them online today.