Many small businesses out there aren’t entirely knowledgeable about what kind of insurance policies they need to invest in.
Some are enforced by the law, some provide peace-of-mind at your greatest time of need, and some are both.
Such is the way with workers’ compensation. You’re probably wondering what reasons there are for investing in it. After all, you want to make sure your workers are protected but are workers’ comp insurance the right way to do it?
Here are several reasons why your small business needs to purchase workers’ compensation insurance. Use these as your guide to choosing the right coverage for your team.
1. The Law Requires You to Have It
Workers’ compensation insurance is required, by law, in the United States. The mandates of workers comp vary by state.
However, with the exception of a few, most states require it even if you only have one employee in-house.
This is to protect you, the employer, as much as it is to protect the employee(s) that you have for your workforce. Without workers’ compensation, your company would be on the hook for paying the employee’s medical expenses.
Thankfully, United States law makes it mandatory because it’s in both of your best interests.
If you are found to not have worker’s comp, then you’ll be penalized either in the form of jail time or fines that exceed $10,000. Needless to say, you should find a trusted workers’ compensation provider right away.
2. Your Industry Matters
There’s a common misconception out there among small business owners that workers’ compensation isn’t necessary for certain industries.
They think that as long as your industry isn’t along the lines of construction, warehousing, or other labor-intensive jobs, then you can get away with not having it.
It’s that kind of mindset that can be the downfall of your entire company. Without workers’ compensation, your company is always one slip on a wet floor away from a financial crisis.
Work-related injuries come in many different forms. Things like inhaling poisonous fumes, getting a cut on your skin, having a box fall on your head, all fall in this category.
3. Workers’ Compensation Claims Are Expensive
For those of you out there thinking that you can handle the cost of a workers’ compensation claim, you’re wrong.
The entire idea of worker’s comp is to protect the employee and help them recover while relieving them of the financial toll it takes to do so.
That means that all medical expenses such as prescriptions, rehabilitation, physical therapy, x-rays, doctors’ appointments, etc. are all covered. It’s unlikely that your company can pay that without batting an eye.
In fact, the average compensation that is reached for work-related injuries is around $21,800. Those are settlement dollars. If your worker won’t settle, then you can expect an even higher amount you’d need to pay.
4. Protects the Relationship Between Employee and Employer
Imagine the horror of not only having a worker gets injured on the job but having your best worker gets hurt on the job.
Workers’ compensation claims are a process of high emotion. People will get their feelings hurt as they search for the compensation they deserve.
If you, the employer, are in the middle of that, then it can cause the employee to gather ill-will towards you. Then, not only are you paying thousands of dollars out-of-pocket, your best worker now hates you.
By setting up workers’ compensation insurance, you’re able to take yourself out of the equation in the event an employee gets hurt.
They’ll file a claim through you, but then they and their attorney will be working with your insurance provider to reach a settlement after that.
5. Your Employee’s Injuries May Worsen
The worst consequence of all of this is the fact that not having worker’s compensation may lead to difficulties in your worker’s life.
If your company doesn’t have workers comp, the employee may feel as if they don’t have many options for medical attention.
Because of that, they won’t seek it out and the injury will become more and more severe over time. What could have been treated easily will then become a life-altering nuisance for them and their family.
Make sure your entire workforce, including yourself, has their future health protected via your workers’ compensation insurance.
6. It Covers Everything
A big strike that most people have on insurance as a whole is the many exceptions it has for certain claims. This isn’t the case with workers’ compensation.
Workers comp covers everything from illness to broken bones, cuts, lacerations, concussions, muscle strains and sprains, and even death.
If the line can be drawn back to an injury or illness caused by a work-related incident or activity, then workers’ compensation insurance can cover it.
What’s better is that this peace-of-mind can be obtained at a reasonable price. It won’t add that much to your overall budget to invest in. You can get the coverage that you want at a price that’s reasonable.
Set Your Small Business up With Workers’ Compensation Insurance Today!
Now that you’ve seen all the reasons that workers’ compensation insurance is so crucial, it’s time to find the right fit.
Take your time to search for the right workers’ compensation provider that you feel will team up with your small business for years to come!
Be sure to read this article on the different types of workers’ compensation for more information on what policy will best fit your needs.
For more inquiries that you may have, feel free to reach out via our contact us page and