Workers Compensation covers the employer for work related injuries or occupational disease sustained by you (if included in coverage), your employees, and depending on the state you live in and the nature of your relationship, your Independent Contractors for:
- On the job injuries that arise in the course of employment (Ex. Dog Bite)
- Occupational Diseases that arise out of employment and are caused by characteristics of the occupation (Ex. Carpel Tunnel or Rabies)
- Employer's Liability that is excluded from Employment (Ex. Spouse or Family member of employee sues alleging loss of consortium, due to employer negligence)
Workers Compensation Benefits include Medical payments and Disability income. Workers Compensation is compulsory in all states, (except Texas), although laws differ depending on each individual state statute (some say 1 employee, some say 3, some 5). State laws vary on whether Independent Contractors must be covered—be sure to follow the law in your state! Most insurers will pick up Independent Contractor's pay at audit if a policy is in place, as the company would be forced to pay a claim if your state law/statute requires.