Insurance for workers of small lathe factory

Submitted by Anonymous (not verified) on Mon, 04/08/2013 - 12:31

I've recently started a small factory equipped with a few lathe machines and hired a total number of 10 people. Do I need to carry any sort of employer's insurance or workman's compensation, or something like that? If yes, how much is required by law?

Posted: 08 Apr 2013 04:52 Post Subject:

Yes, ideally you should carry an insurance. I think the best idea would be to consult a legal expert regarding how much would be required.

Posted: 09 Apr 2013 06:44 Post Subject:

I think the best idea would be to consult a legal expert regarding how much would be required.



Have now legal professionals started giving advice on insurance products? Where will the licensed agents and brokers go then?

Posted: 09 Apr 2013 06:58 Post Subject:

You could have a general liability insurance that would cover legal hassles due to accident, injuries and claims of negligence. However, since you own some machinery and the workers use those, you are exposed to the risks of serious injuries. So keeping that in mind, you should purchase a separate workers’ compensation policy. Check with your nearest Small Business Administration office or state’s Dept. of Insurance to know what type of insurance in mandatory for a business like yours.

Posted: 09 Apr 2013 09:53 Post Subject:

general liability insurance that would cover legal hassles due to accident, injuries and claims of negligence

This would NOT cover employees. Employees in all states are required to be provided with coverage for occupational injuries by Workers' Compensation insurance. Failure to obtain the required insurance is a form of insurance fraud.

We don't know which state is involved, so the answer is uncertain, because some states are "monopolistic" -- they alone are the WC insurance provider for employers in those states. Other states have open competition for WC insurance, and the employer may obtain coverage from any admitted insurance company.

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