Do I Need Workers’ Compensation Insurance if I am Self-Employed?
Being your own boss can be an exciting and liberating experience. However, while operating your own company and maintaining control over your career can be enticing, it may also include many of the same risks and exposures as working for an employer. Even if you are experienced and diligent or work in a low-risk industry, work-related injuries and illnesses may make workers’ compensation insurance an invaluable investment.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance is integral to any employer’s loss control measures. These policies can provide critical financial assistance for employees in the wake of on-the-job injuries or illnesses, including by helping to pay for the following costs:
- Medical bills
- Lost or reduced wages
- Disability benefits
- Vocational rehabilitation
- Death benefits
In addition to helping affected workers manage the financial ramifications of their injuries or illnesses, workers’ compensation insurance also typically includes employer’s liability coverage, which can help companies pay for various legal expenses, such as attorney fees, settlements and judgments, if an incident leads to a lawsuit.
What Requirements Are There Regarding Workers’ Compensation Insurance?
Workers’ compensation insurance laws may vary depending on your enterprise’s unique circumstances, including location and workforce size. For example, Illinois legally requires employers to provide workers’ compensation insurance for anyone who is hired or whose employment is localized in the state. Failing to adhere to these obligations can incur fines of up to $500 for every day of noncompliance with a minimum of $10,000.
Still, there may be exemptions for some employers, such as those involving sole proprietors, business partners, corporate officers and members of limited liability companies. If you are self-employed, you may be exempt from workers’ compensation insurance laws, although this status may largely depend on whether or not you employ others. Generally, if your organization has employees, it must provide workers’ compensation coverage. A qualified insurance professional, such as those at V Financial Insurance Group, can help you assess your unique circumstances and identify applicable requirements.
Even without applicable laws, workers’ compensation insurance should be strongly considered. In many cases, general health insurance policies exclude work-related incidents. As such, if you are working for yourself and suffer a work-related injury or illness, lacking workers’ compensation coverage may leave you without access to the care you need to recover. Furthermore, you may accrue significant financial losses by lacking the income replacement component of workers’ compensation insurance.
Get the Right Coverage
Our knowledgeable team at V Financial Insurance Group has extensive experience helping hundreds of businesses, families and individuals secure ideal coverage solutions. We will work with you to identify your obligations, explore available options and assemble optimal policies to protect your financial interests and future prospects. Visit our website or call 847-221-8446 for a personalized quote or learn more.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Workers Compensation