If you are a small business, the odds are that your state requires you to provide worker's compensation insurance to your employees. This is work insurance that covers any sort of job-related injury or disability that may prevent them from working. The cost of this insurance varies based on the risk involved in your business' line of work, but failure to pay for insurance could result in hefty fines or worse.
Determine if you qualify as a self-insured individual business of a member of a self-insured group. The requirements for this vary from state, but the basic tenets are that if you can make a case for being a small enough business that other insurance already satisfies state requirements, or if your business' membership in an insurance-providing group already offers worker's compensation or similar coverage, you may not need to obtain worker's comp specifically for your company.
Seek certification as a self-insured employer by contacting your state's Division of Worker's Compensation.
Contact your state's Secretary of State, Department of Financial Institutions or the corresponding office that manages state business operations and regulates insurance. They should be able to direct you to a list of all the rates for worker's compensation insurance providers.
Select an insurance provider offering a low rate and an appealing coverage package.
Contact your state if you cannot find an adequate insurance provider. Depending on your state, you could be assigned to a "risk pool" operated by any number of companies, such as the Travelers Commercial Casualty Company.
- Photo courtesy of wools on Flickr