What is the difference between Workers Compensation and Employers Practices Liability?
Have you ever found yourself working with a family member and unfortunately they are hurt on the job?Maybe you've been sued by someone you felt was like family for wrongful termination or just asked yourself "Do I have an insurance policy that would cover me in these situations?"
Well those would be great questions to ask. You might consider showing some family members how to work in the family business or consider hiring a friend or a friend’s child to help out during your business’ busy season. Whatever your situation, one thing you should know is what determines whether or not you have to carry Workers Compensation Insurance in Massachusetts.
If your business is “Doing Business As”,a sole proprietor, a Corporation who has opted out of Coverage, or an LLC; you are required to carry a policy for anyone who works for you (whether they are seasonal help, or they are a family member). The common misconception is that a family member is considered part of ownership. That is not the case in MA law. These family members are truly employees.
Workers Compensation will protect the employeefrom any medical expenses, rehabilitation, and if out of work for more than five business days, they would also be entitled to some lost wages.
If you have any employees (even if you consider them to be “like family”; you might want to consider obtaining an Employers Practices Liability policy. This policy would protect the employer.
These policies are created to help the employer pay for any allegations held against them for such things as wrongful termination, sexual harassment, discrimination, invasion of privacy, breach of contract, emotional distress, as well aswage and hour law violations.
I feel the most important thing to think about when discussing this type of policy is…..Can you afford all of the fees involved with a lawsuit just to defend yourself against false allegations?
It is truly worth a discussion with your current insurance agent in regards to obtaining the above coverages…..your businesses longevity could depend on it.
If you would like to discuss this further or obtain a quote from our agency. Please feel free to reach me at 508-824-8666 or email Karen@fbinsure.com