Lost Wages and Medical Care
If you hire anyone, you are required by law to hold workers compensation for your trade school. The main reason for this is to protect you from the huge costs of a worker's medical care and lost wages in the event that they hurt or made ill on the job.
$35 A Month
Business Travel Protection
Many workers compensation policies for trade schools do not cover expenses incurred when an employee is injured out of state. If you send employees out of state for business, for recruiting purposes, for instance, you may need to purchase additional coverage to be sure you will not be stuck with astronomical medical expenses.
The workers compensation that you hold for your trade school can also protect you from extensive legal fees. Employer's liability coverage in your business insurance protects you in the instance that an employee sues you over an accident or illness. In most situations, an injured worker will simply accept payments through your workers comp. However, if they believe they can prove your liability in an accident at work, they may choose to sue to recover more money. Without protection, you could be faced with steep legal fees.
Employer's Liability in Monopolistic States
Although it seems unlikely, being sued by an employee is a very real possibility and having employer's liability coverage in your trade school workers compensation in important. If you do business in a monopolistic state, your typical policy may not include it. A monopolistic state is one in which you must purchase your workers comp through a state fund. If you are in such a state, be sure that your policy includes employer's liability or that you purchase additional coverage.
Even though your workers need not prove your liability in an accident to receive compensation, a law suit is still possible. If you do not have coverage for employer's liability within the workers compensation policy for your trade school, the fees you would need to pay could be very steep. Employer's liability can pay for an attorney for your defense, fees for an investigator, court fees, and even the damages in the event that the suit is successful.
Another situation that could arise and make employer's liability important is a suit brought against you by a third party. If your injured employee believes that a third party, rather than you or your business, is responsible for their injury or illness, they may choose to sue this third party for damages. The third party might feel that the true liability lies with you and bring a suit against your business. With employer's liability coverage in your trade school workers compensation, you will be able to cover the associated legal fees. These can include the investigator to determine liability, court fees and costs, attorney fees, and possibly damages for the third party.