There are almost 3 million non-fatal workplace injuries in the United State every year. Workers’ compensation insurance provides benefits to these employees or those who get sick due to work duties. It covers medical expenses, lost wages, ongoing healthcare costs, and even funeral expenses.
But you may work in an industry that you think isn’t susceptible to workplace injuries, such as an office environment. Especially if you’re a small business, you may wonder whether workers’ compensation insurance is necessary.
But workers’ comp is a vital investment not only for your business but the people it employs. Here are three reasons your business, regardless of its size or environment, needs it.
1. It Is Required
Modern workers’ compensation is a concept that has been around since the 19th century. But the history of protecting or compensating workers injured on the job goes back millennia.
Today, each state regulates workers’ compensation policies. Most require coverage, although there are exceptions. And, in all states, employers fully fund the plans.
Details on requirements and penalties for not carrying the coverage vary depending on where you live. In a few states, the fines are extremely high and the penalty for not having workers’ comp can even include jail time.
In most states, businesses are free to shop around for different plans with the broker of their choosing. But a handful of states mandate they buy policies from a state fund.
The point is to be aware of the legal requirements in your state. Be certain your business is in compliance with all laws and regulations.
2. It Provides Valuable Assistance to Your Employees
In the event of injury, workers’ compensation insurance allows your employees to get the medical help they need. It also helps compensate their wages or salaries due to absence, which can significantly improve their quality of life.
This continuity and payment for necessary treatment also can translate to your employees returning to work quicker. That also means you don’t have to deal with reduced productivity or the time and cost of hiring temporary workers to fill in the gap.
In short, workers’ compensation insurance gives your employees and your business the financial assistance it needs if the unforeseen happens.
3. It Protects Your Business
Even if you think your workplace isn’t prone to incidents, that may not be the case. People become injured doing any number of everyday tasks.
Workers’ comp plans ensure that your employees are taken care of. But it also alleviates any unnecessary financial burden placed on your business. Without this coverage, even one major workers’ compensation claim could mean significant financial harm to your business.
Coverage protects your business from lawsuits based on workplace injuries. An important point here is that protection exists regardless of how or why the injury occurred. In other words, there is no headache of litigation, for instance, to determine if the worker was partly to blame for the injury.
Workers’ compensation insurance cost is a small price to pay for this protection. And, for businesses with only a handful of employees, you can shop around for a cheap insurance option. You can find a level of coverage that provides basic protection and is within your budget.
Find Workers’ Compensation Insurance Today
Now that you have an idea of why workers’ compensation insurance is invaluable to your business, you can find a plan that is right for you. Have the peace-of-mind that you and your employees are covered in the event of a workplace injury.
And most workers’ compensation insurance companies will offer free quotes on policies. So, you have nothing to lose by reaching out.
We hope this information was helpful to you. Be sure to check out our other business-related posts, as well as those on financial growth, leadership, lifestyle, and many other topics.