Carrying business insurance is one of the many steps owners take to protect their company. One key type is workers' compensation insurance. This coverage offers financial assistance to employees who’ve been injured at work or are unable to work due to an occupational disease. Here's a closer look at the ins and outs of workers’ compensation.

Does Your Nebraska Business Need Workers' Compensation Insurance?

What businesses are required to have it?

The Nebraska Workers' Compensation Act requires nearly every business in the state to carry a workers' comp policy if they employ one or more people. The goal of this coverage is to provide certain benefits to an injured employee while limiting liability to the employer.  This rule also applies to companies based out-of-state that have employees and operations in Nebraska. 

Are there any exemptions?

The state allows some types of organizations to bypass workers' compensation insurance. Federal and railroad employees are exempt from the rule, as are  volunteers, and domestic servants. Workers in agricultural positions are often exempt, as well. Additionally, the majority of business owners aren't required to cover themselves as long as they're registered as sole proprietors, a partnership, or an LLC.

What are the consequences of not purchasing coverage?

If your business is required to carry coverage, failure to purchase an insurance policy is costly. The state's penalty starts at $1,000 for every day the company goes without coverage. The owner also faces a $1,000 fine and up to one year in prison, and the business may lose its operating license in the state. Beyond the penalties you’ll incur, not having coverage puts you at risk of paying significant injury-related costs out of pocket.

What are an employer's responsibilities if someone is injured?

After an employee notifies you that an injury or medical issue has occurred, you have 10 days to file an official report with the Worker's Compensation Court. You also need to contact the insurance company so they have adequate time to investigate the claim. The provider has 30 days to make a decision. 

Help keep your business and employees protected with assistance from Mid-Alliance Insurance Associates in Lincoln, NE. This trusted insurance agency is proud to meet the coverage needs of residents and businesses across Southeast Nebraska. From liability to commercial property, the team is committed to helping each client find the right solutions for their unique needs. Learn more about their workers' compensation insurance options online or call (402) 421-7800 to request a quote today.