Workers' Compensation Insurance for Limited Partnerships
When you own a business, you should know how to handle your obligations based on the type of company that you run. There are several different business designations, such as sole proprietorships, Limited Liability Companies (LLC), and S-Corporations. Different types of partnerships also make up a significant portion of businesses today.
The goal of almost any business, including Limited Partnerships (LPs) is to generate profits. With great profits comes great responsibility, and these business designations should have layers of protection so that you can operate them with little concern of financial risks.
Here's what you should know about buying Workers' Compensation insurance for your Limited Partnership business.
The Importance of Workers' Compensation Insurance
So, what makes Workers' Compensation insurance important? Having a Workers’ Compensation plan can be necessary when you're trying to help protect your business.
Knowing these reasons can help you shop around until you find a plan for your company.
It Helps Protect Your Workers
For starters, Workers' Compensation insurance is important because it can protect your workplace and employees. Working professionals are subject to different risks on the job. Having an insurance plan can help protect them against these risks, the same way that a car insurance plan can protect drivers.
This can be especially important for small business owners who have a staff that they need to take care of. The last thing you may want is for your employees to not have “peace of mind” when they're putting time on the clock. This measure of protection can promote a positive workplace culture and help keep everyone safe.
You Can Avoid Liability Issues
As a Limited Partnership, you may also want to be extra vigilant about helping to protect your liabilities. A partnership doesn't come with the same layers of protection as an LLC, yet you may still have plenty of potential risks that are worth your attention.
There are some common business liabilities that companies have to contend with, including injuries sustained while at work or in the commission of the job.
Having a quality Workers' Compensation plan can help prevent your company from taking a serious financial hit due to these liability issues.
Companies Might Be Required to Have a Policy
Perhaps one of the most important reasons to get a Workers' Compensation insurance plan is that most companies may be legally required to have it. This is a statewide legal issue, so make sure you're aware of the laws in your state.
Most states require you to have a Workers’ Comp policy whenever you have one employee or more. It can also depend on the type of company that you run. Figure out what the law says where your business operates and reach out to an insurance provider that can supply you with a quality plan if you need one.
It Can Save Your Company Some Money
You might also appreciate Workers' Compensation insurance plans because they can save you money in the long term. Dealing with an employee's medical bills, physical therapy, medication, or other expenses can add up for your company if you are paying these expenses out of pocket.
By purchasing an insurance plan, you could be better prepared to handle these costs and it could allow your small business to continue to grow.
You Can Get “Peace of Mind” and Flexibility
It can also be important for you to have a Workers' Comp insurance policy because you may feel more comfortable having your doors open and your company in operation. Knowing that you have protection in place can help you run your business with less stress and concern.
One of the last things you'd want is to worry about your company's ability to respond to emergencies. Keeping your insurance policy active can give you the flexibility that you might need for your small business to put in the hours, compete with the market, and get the most from your workforce.
Know What Workers' Comp Insurance Can Cover
Next, make sure that you know what your LP Workers' Compensation insurance plan offers.
Understanding what people are entitled to under Workers’ Compensation laws can help ensure that you get the insurance coverage that you might need. Your insurance policy can handle the benefits that injured employees are entitled to, along with other details.
Here are some of the main insurance benefits that can come with this territory:
Medical Bills and Physical Therapy
Some of the biggest expenses that come about after an accident are medical bills and expenses related to recovery. Your employees may need to get an initial examination from a physician to substantiate the injuries.
They may then need to visit a physician that the insurance provider works with. From there, the employee might have several follow-up visits with doctors to examine their injuries and oversee the healing process. Many employees also visit a physical therapist, chiropractor, massage therapist, or other medical professionals.
Your employee should keep all copies of medical bills. They should also keep you abreast of these bills to help make sure that the payout for these damages is accurate.
Wages That the Employee Miss
If your employee needs to miss time off from work due to an injury, they might be missing out on income. The insurance provider can cover these missed wages. This can help with rent, mortgage, bills, groceries, and other life expenses.
It can help injured employees maintain their quality of life as they heal and get back on their feet.
Death Benefits if a Fatality Occurs
Keep in mind that it might also be possible for an injury to cause a fatality. If a fatality occurs, then the insurance provider can pay for the death benefit. This is money that the family of the deceased can receive. It can cover damages like lost income and other aspects that can come about as a result of your employee's death.
Shop for Limited Partnership Insurance Policies
Now that you know why having an insurance plan can be critical, do your due diligence as you shop around. You might want to find a knowledgeable and credible insurance provider that offers policies in your state.
Browse the policy features to make sure that this business insurance coverage is suitable for your industry. Not all policies are created equally, so compare features and coverages.
Reach out for a quote as well to find out if you can afford the premium. Read the insurance providers’ ratings to also help make sure that they are credible and qualified.
Find Limited Partnership Workers' Compensation Insurance
These tips can help you shop for Limited Partnership Workers' Compensation insurance.
PolicySweet can assist you when you need an insurance policy. Contact us via our site or at 1-800-625-8257 to talk about policies or to get a quote.