As a small Business owner, do You have Peace of Mind?

In the Nampa, Boise, Caldwell, and Meridian valleys we have built our communities through the growth of many small businesses. Whether you own a small business that is seasonal or year round, you are required by Idaho State law to carry Worker’s Compensation Insurance.  Whether you have 20 employees or 2 employees, are a private or public employer, hire full-time or part-time employees, most employers must have this coverage. However, there are some exceptions.  Do you know what they are?  At Asset Protection Group, we believe teaching our community about insurance will help them make educated decisions when it comes to their coverages. Below, are some frequently asked questions we get regarding Worker’s Compensation insurance.

Why do I need Worker’s Compensation Insurance?

If an employee were to get injured or ill due to the job, you as the employer would be held personally liable for medical expenses, loss of wages and any other benefits under the law.   

Am I exempt from needing Worker’s Compensation Insurance?

You can be exempt from paying for Workers Compensation Insurance if you employ, under certain conditions, ski patrollers that are volunteers, household domestic services or those that are real estate associates or salespersons that are paid by commission only.  There are also special considerations for sole proprietorships.  It is best to ask your independent insurance agent to determine if you are required to carry this insurance.

Do I need Worker’s Compensation Insurance if I am self-employed?

Yes and No.  If you are self-employed and are the sole proprietor or you have no employees, you are not required to carry Workers Compensation Insurance.  However, it is a good idea to carry it or a disability policy, in case you are injured or develop a job related illness while working.

If I hire a subcontractor, do I need a Worker’s Compensation Policy?

Subcontractors are not considered employees and therefore whoever is hiring them is not always required to carry Worker’s Comp Insurance.  However, it would be a good idea for the subcontractor to protect themselves and carry their own policy. As every business can be unique, you should seek counsel from your expert independent insurance agent.

What happens if I don’t carry it and I am supposed to?

There are multiple penalties if you are required to obtain and fail to get Worker’s Compensation Insurance.  First, if one of your employees receives and injury while on the job, you will be personally liable for all medical bills, lost wages, and any other benefits covered by the Law.  Second, you are liable to pay up to $25 per day that you do not have this policy.  Finally, the courts could shut down your business until you are properly insured. In Idaho, running your business without workers' compensation insurance is a misdemeanor and you could suffer criminal penalties as well.

How much does this insurance cost?

There are several factors that are considered in the cost of Worker’s Compensation Insurance. The frequency and severity of claims from your business or type of business can affect the rate.  However, working with risk management to make sure your job environment is safe can help reduce the number of job related injuries and illness and therefore helps keep rates down. The type of business you have and the actual work that the employees will be doing are also factors determining your costs.

How do obtain Worker’s Compensation Insurance?

You will need to complete an application that will need information about your employees, payroll, type of business and type of work the employees will be performing. Whether your business is in Nampa, Boise, Caldwell, or Meridian, if you need more help navigating this application process, contact our office. We offer free quotes!

Hopefully this has cleared up some confusion for you regarding Worker’s Compensation Insurance.  If you have any more questions, please feel free contact Asset Protection Group at  (208) 466-4694. Our agents are ready to give you Peace of Mind.