Thursday, November 10, 2011

Insurances for your company

As soon as you hire your first employee you must buy the workers compensation insurance that covers them if they are accidentally injured at work. Once you partner with another company or vendor you should buy the liability insurance which will cover your corporation from third party losses.

If it’s mandated by the state, employers must provide workers’ compensation (WC) coverage for all of their employees, including seasonal and part-time workers. States like Pennsylvania audit companies for Workers Comp coverage on a regular basis. Never delay buying one to avoid penalties. The one exception from buying WC insurance is working for your own company. You can request the state for exemption by filing a UC-8 exempt form. Workers Comp insurance premiums are calculated on the basis of the employee’s salary. They have a fixed rate per every hundred dollars you pay in wages.

Liability insurance offers protection against third party insurance claims, i.e., if one of your vendors or clients suffer losses because of your employees. Most of the vendors require the certification of this coverage to start doing business with you.Your liability insurance premiums vary depending on the industry you are in.

I use Hartford, one of the leading insurance providers. Check their website for details and quotes .Also get quotes from other insurance providers like state farm to compare and decide. To start with one employee the total insurance premiums for these two insurances will be less than eight hundred dollars per year. And remember that these premiums are tax deductible and to renew them each year.