Do I need workers’ compensation insurance for my family-owned business?

At J&L Risk Management Consultants. We often ask questions about workers compensation audit for any kind of business including family-owned businesses. Many small businesses are wondering if they need insurance of this kind if they are a family-owned business. Sometimes when determining whether you need insurance for workers, you should ask yourself.

Do You Have Employees?

If you have any non - family employees, even if they are just one person, you need compensation insurance for workers. Many family-owned businesses have non - family members outside help. You may not need workers ' compensation insurance if you don't have any employees.


Are Your Family Members Helping or Employees?

Another question for yourself is whether members of your family help you out or are employees. Do your grown children stop at your shop and help you out in their free time for a few hours a week, or do they have a set schedule to work? They are probably careful employees if they have a set schedule and you rely on them, and you should cover them under a policy of compensation for workers.

Do You Pay Your Family Members as Employees?

The last question you have to ask is whether you are paying employees to your family members. They may not be employees if you slide them $20 here or there to help you out with a project. But if you pay them for their work weekly or bi-weekly, they are an employee, and you have to cover them with insurance for workers ' compensation.


If you still are not sure if you need workers compensation insurance in the Lakewood, CO area, let J&L Risk Management. help. Call us today, and one of our agents can answer your questions and determine whether you need this insurance coverage or not.