Why Your Small Business Needs Worker’s Compensation

Worker’s compensation insurance is required by law in most states. While you might think it is just another expense you have to pay, the state requires this type of coverage for a reason. As a small business, you have a need for employees to get all of the duties done throughout the day. While it does not happen every day, your employees can suffer injury from illness or job-related duties. When your employees are injured, they will either file a claim through your worker’s compensation insurer or file a personal injury claim when you do not have the appropriate insurance. It is important to build a very comprehensive business insurance portfolio if you want to avoid claims and claims payments. Read on to find out how worker’s compensation will protect your company, and make the right choice for the health of your business.

What is Worker’s Compensation Insurance?

Worker’s compensation insurance, sometimes called workmans comp, is a policy that will cover your employees’ medical bills and lost wages if they are injured or become ill on the job. Policies are offered by commercial insurers and depend on the business’ annual payroll. Premiums may also depend on your employees’ job descriptions. If your employees work in a hazardous environment, the premiums for insurance will be higher than those who work in the office. With this being said, worker’s compensation insurance is an important part of any business insurance portfolio no matter how large or small the company.

Why You Shouldn’t Be Without Worker’s Compensation Insurance

When you do not have worker’s compensation insurance, you are opening your business up to two different types of risk. The first risk you have to consider is being held responsible for your employee’s injuries when they are injured on the job. When you are held liable for these injuries, you will have to pay for lost wages, medical services, and other medical costs. If you do not agree with some of the costs of services that the employee submits to you, you may have to worry about dealing with their attorney.

Another risk you have to consider is that your state will hit you with strict fines if worker’s compensation insurance is required and you are not covered. Being cited for failure to carry worker’s comp insurance can really tap into your profits and affect the financial state of your business. Having worker’s compensation insurance will protect you from these risks.

Can Your Employees File a Claim With Your Insurer and Also Come After You?

The main reason why you need worker’s comp is because of what happens when an employee accepts payment from your insurer. When the employee accepts payment, they are waiving their right to file a personal injury claim against your business for negligence. This means you do not have to worry about defending yourself against an aggressive NY construction accident attorney for example, because the employee has waived their rights to sue.

It is important to invest in all of the protection your business needs before accidents happen. If you are operating without worker’s comp insurance, now is the right time to start requesting quotes. It is a lot more costly to go without insurance in the long run.

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