What is Worker’s Compensation Insurance? Worker’s compensation insurance is a specific type of business insurance that provides benefits to employees who suffer work-related injuries or illnesses. This insurance can cover lost wages while they are out of work, medical expenses, and more. Worker’s Compensation coverage can protect both the employer and the employee in the result of a work-related injury.
Am I required to have worker’s compensation? No – if you employ less than four employees, then household employers may be exempt from this requirement. However, if you hire four or more employees, then you must provide worker’s compensation. *Part time workers and family members are counted as employees.
If I have less than four employees and choose not to provide Worker’s Compensation, will my employees still have this coverage? No – your employees will not be covered. You may become liable for lost wages, medical care, and more should an employee be injured while working. Your homeowner’s insurance may or may not give you a small protection and this may be an additional coverage you have to purchase. You must contact your homeowner’s insurance agent to determine this. This is not a substitute for a full worker’s compensation insurance coverage.
If I choose or become required to provide worker’s compensation coverage, where do I go to purchase workers’ compensation insurance? Workers’ compensation insurance coverage can be obtained via a commercial insurance carrier licensed to write workers’ compensation insurance coverage in the state of South Carolina or via the state’s assigned risk program, which is administered by the National Council on Compensation Insurance (NCCI).
Please note – The information provided by Morning Sun Financial Services in this document does not, and is not intended to, constitute legal advice; all information is for general informational purposes only. Morning Sun Financial Services encourages employers to seek legal counsel if they have additional questions regarding worker’s compensation coverage.