Running your business is hard work. Managing daily activities, acquiring and keeping new customers and coordinating employee efforts are all common and important duties. However, no matter how hard you try, you can’t always be there to make sure that things run smoothly, and in those moments disaster can strike in the form of work related injuries.

A slip, a fall or even a loss of limb or life can throw your business into turmoil and cause unspeakable damage to your employees and your livelihood if you do not have a proper workers compensation insurance policy in place. If one of your employees got seriously hurt on the job today would you be able to pay for all of the necessary expenses?

Did you know that your state may have specific requirements for workers compensation insurance coverage? Want to know more about the benefits that having workers compensation insurance offers your business? What follows is some important information about workmans compensation insurance and how it benefits you, your business and your employees for unavoidable workplace injuries.

Workers compensation, which is also known as workers comp, is a type of insurance that covers financial losses related to on the job injury or illness, such as medical bills and lost wages. This type of policy also protects you, the employer, from any potential lawsuits and claims brought forth by an injured employee who alleges negligence that results in injury while carrying out business activities on your behalf.

With the right employee compensation coverage, members of your staff are fully protected when an accident takes place, no matter who is at fault. Having workers comp insurance is an important aspect of United States labor law and is generally mandatory and guided by the Department of Labor and specific industry and workplace regulations, depending on the state in which you own and operate your business.

The major coverages that workers compensation insurance provides for an injured worker include the following:

North Dakota has a state funded (monopolistic) workers compensation program and has specific guidelines that employers must follow for providing workers compensation insurance to their staff.

• If you employ individuals permanently or temporarily for full or part-time work, you are required to have workers comp insurance in North Dakota.

• Independent contractors are typically required to show proof of workers compensation insurance before they can be hired.

• In some cases, general liability insurance is necessary in addition to workers comp insurance to provide maximum protection and benefits for workplace injuries.

• Sole proprietors, limited liability company and partnership members, as well as corporate officers are not automatically covered by workers compensation provisions in North Dakota.

• Once an Independent Contractor Verification Application is in place, its holder becomes exempt from having workers compensation insurance coverage.

• General contractors must provide coverage for subcontractors until they establish their own policies.