Workers' Comp for Retail Businesses

Stores and other retail businesses perform many daily operations that could lead to employee injury or illness, including loading and unloading inventory, stocking shelves, and more. Without the right workers' compensation insurance, your business is vulnerable to employee lawsuits for any injuries or illnesses that arise from workplace accidents. Having retail workers' comp protects your business and your employees.

Fortunately, a local independent insurance agent can help you find the right retail business services workers' comp policy. They'll get you set up with the ideal amount of coverage for your unique business. But first, here's a closer look at workers' comp insurance for retail, including what it covers, how much it costs, and why it's necessary.

How Does Workers' Compensation Protect Retail Businesses and Stores?

For starters, having workers' comp helps your retail business comply with local laws and regulations. Workers' compensation insurance is required by law in most states for many businesses with employees. These requirements vary by location, industry, and the number and type of employees a business has. It's critical to be aware of the requirements in your state to avoid harsh penalties like state fines, a forced suspension of operations, and jail time.

Workers' comp protects retail business employees from the hefty cost of medical treatments, prescription medications, rehabilitation, etc., if they sustain a work-related injury or illness or develop a disability. This coverage can also provide death benefits to a beneficiary if a worker dies due to a covered incident. 

Further, providing workers' comp insurance protects a retail business from employee lawsuits for these incidents. If your business provides the required workers' comp, it's exempt from lawsuits from affected employees or their family members after a covered accident, etc.

What Does Retail Business Workers' Comp Cover?

Workers' comp for retail businesses can pay for many of the costs associated with workplace accidents or injuries, illnesses, and disabilities that develop over time due to job duties or the workplace. To be covered, these ailments must have been caused by the work environment or tasks required of the job. 

For example, covered incidents could include a disability that develops due to repetitive motion, such as lifting products, an illness that arises from inhaling toxic substances used at the business, or an injury that occurs due to normal job tasks, such as a worker's foot being crushed by a heavy box. 

Retail business workers' comp can pay for the following:

Workers' comp can replace an employee's wages, typically up to two-thirds of their normal pay, during any time needed off work to recover from a covered injury or illness. It can also reimburse a business for expenses related to hiring new talent if it must replace an employee due to a covered severe injury, illness, disability, or fatality. 

Why Stores and Other Retail Businesses Need Workers' Comp Insurance

Just one workplace accident could set your business back tens of thousands of dollars or even more if it doesn't have workers' comp insurance. Your business could face a lawsuit from the affected employee or their family members if an incident occurs that workers' comp could've covered. Then, your business would be on the hook for covering the cost of the employee's medical bills, medication, rehabilitation, and lost wages in addition to its legal defense in a lawsuit.

Without workers' comp, your business could face potentially devastating financial losses, including bankruptcy. Even if your business employs the safest training and practices, accidents can still happen at any time. Even a slip and fall employee injury could create the need for expensive medical care and time off work for recovery. Also, remember that your business must comply with local regulations for workers' comp to avoid fines, etc.

How Much Does Workers' Comp for Retail Businesses Cost?

The cost of retail business workers' comp can vary considerably depending on your business's location and other factors. However, many retail businesses pay an average of only $67 per month for workers' comp. But the riskier your business's operations, the larger it is, and the more employees it has, the more you can expect to pay for workers' comp. 

Premium rates often depend on the following factors:

The formula for calculating workers' comp costs factors in your employees' classification codes, which determine their base rates, your business's claims history, and your annual payroll. Rates are often set per every $100 of annual payroll. An independent insurance agent can help you find affordable retail business workers' comp insurance near you.

Retail Business Workers' Comp Monopolistic State Funds

A handful of states require retail businesses to obtain their workers' comp coverage through a monopolistic state fund. This means that businesses in these areas are not allowed to purchase workers' comp through private insurance companies. The states with these requirements include:

• North Dakota
• Ohio
• Washington
• Wyoming

Even if your business is located in a state with a monopolistic state fund for workers' comp, an independent insurance agent can still help you find the coverage you need.

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An Independent Insurance Agent Can Help You Find Workers' Comp for a Retail Business

When it's time to find the right workers' comp insurance for a store or retail business, no one's better equipped to help than an independent insurance agent. These agents have access to multiple workers' comp insurance companies, so they're free to shop and compare policies and rates for you. 

They'll get you matched to a policy that offers the best blend of coverage and cost. And down the road, your agent will still be there to help update your coverage as your business's needs evolve and can even file workers' comp claims for you.