At any place of business, workers may become sick or injured, resulting in significant medical expenses as well as lost wages. Workers’ compensation insurance helps to cover these costs, making it beneficial for business owners and employees alike.
It’s not just that workers’ compensation insurance is beneficial; for a majority of small and medium-sized businesses, it’s actually required. While workers’ comp laws vary a bit from one state to the next, a majority of businesses are mandated to have workers’ compensation insurance in place from the moment they hire their first employee.
The Benefits of Workers’ Compensation Insurance
Even if your company isn’t mandated to have workers’ compensation insurance, it can nevertheless be a smart investment. There are a number of reasons for this:
Workers’ Comp Provides Financial Protection
Accidents can happen in any workplace; employees may develop medical conditions ranging from carpal tunnel to broken legs. Frankly, most small and mid-sized businesses don’t have the financial leeway to pay for medical expenses out of pocket, which means that even a minor accident can have devastating financial consequences. Workers’ compensation insurance provides an important safety net, and a layer of protection.
Workers’ Comp May Provide Legal Protection
This is something that can vary from state to state, but in most places a workers’ comp policy will include employer liability insurance. What this means is that the business is protected against employees filing a suit against them, specifically suits alleging negligence or unsafe work conditions. Again, a workers’ comp policy can shield the business from financial calamity, in many cases covering attorney fees, court costs, and more.
Workers’ Comp Often Involves Death Benefits
For businesses, nothing could be more tragic than an employee who dies on the job. Workers’ comp insurance provides a very small silver lining to this unthinkable outcome; most of the time, workers’ comp insurance offers death benefits, helping the deceased employee’s family to pay for funeral and burial expenses.
Does Your Business Need Workers’ Comp Insurance?
Currently, Texas and South Dakota are the only two states in which companies are never required to buy workers’ comp. Many states require companies to buy workers’ comp insurance the moment they hire an employee, while some states require workers’ comp insurance only after two or three employees are hired.
It’s worth checking the specific guidelines for your state, but also to keep in mind that workers’ comp insurance is highly beneficial, whether it’s mandatory or not. With any questions about affordable workers’ comp insurance for your small or medium-sized business, contact FullHR today.