13 Mar Small Business Workers Comp Insurance–Do You Need It?
As a business owner, you know the amount of responsibility that you have on your hands.
You’ve placed all this time and effort into making a safe workplace for your workers. Even so, accidents happen all the time. Unforeseen incidents occur that can lead to severe setbacks and injuries for your employees.
That’s why workers’ compensation is so important to have for your company. It protects you, your company, and (most importantly) your injured worker.
Interested in learning more about small business workers’ comp insurance? Here is an in-depth guide on what it is and why it’s important.
1. What Is Workers’ Compensation?
Workers’ compensation is exactly what it sounds like. It’s used to help your worker in a time of financial crisis.
If they were to sustain an injury while on the job, it could wind up being so severe that they are unable to work. Or perhaps if they could work, they are unable to afford their medical expenses.
Workers’ comp is used to compensate your employees and see to it that they and their family are taken care of.
As long as the worker files a claim within a certain time window, they can seek a settlement from your workers’ comp provider.
2. Why Is It Important?
First and foremost, your company is legally required to have it.
In fact, any employer with at least one employee is required to carry workers’ compensation coverage for their workers. If they’re caught without it, they will be susceptible to heavy fines and fees.
Simply put, if your company doesn’t have proper workers comp for its employees, your entire business may go under as a result of high penalties.
Secondly, it’s important for protecting the relationship between you (the employer) and your top-tier talent.
Without small business workers’ comp insurance coverage, you would be the one forced to reach a settlement for your employee’s injury. Money disputes such as these often become personal and hard to recover from.
Placing that settlement responsibility in the hands of your workers’ comp provider takes you out of the equation entirely. Now, your employee and their lawyer will seek compensation from your insurance company rather than dragging you to court.
3. How Can It Bring You Peace of Mind?
Going through a business day without workers’ compensation coverage is like driving a new car on the highway without car insurance. You’re hopelessly praying that nothing bad happens that will get you into legal trouble.
That kind of stress is hard to live with. It will lead to sleepless nights as you ponder when the inevitable workplace incident will occur.
Companies that have proper workers’ compensation coverage don’t have to worry about such things. They can be assured that even if their thought-out workplace safety requirements don’t work, their workers’ compensation provider will work with the employee.
It also means that your employees have a layer of protection over their livelihood if something were to happen.
Lastly, it means you or your workers will receive a payment of your disability benefits to compensate for not being able to work.
4. What’s the Process Like?
If you’ve never had to file a workers’ compensation claim for yourself, you’re probably unaware of the process.
With small business workers’ comp insurance coverage in place, your employee would be able to focus on seeking medical treatment as soon as the injury occurs.
After they’ve been seen by a doctor, they will make you aware of the fact that they’re going to file a claim for workers’ compensation.
From there, you’ll hand them all the documentation and instructions that your specific insurance provider has for their claim-filing process.
Once you’ve done that, then you’ve completed your part of the process. The employee will then most likely seek legal representation, file the claim, then begin the process of reaching a settlement.
5. What Can I Lose if I Don’t Have It?
As previously mentioned, there are several consequences that you risk when you choose not to invest in workers’ compensation coverage for your company.
The aforementioned fines will most likely be an amount so substantial that your company won’t be able to recover from.
You also open yourself up as a target for your injured employee. They have the right to sue you in court for the financial and physical damages that they allege your negligence contributed to.
You might also be located in a state that will stop at nothing to shut your business down for good, even if it can afford the fines. If not permanently, the state will at least demand that you shut down operations until you can prove that you have workers’ compensation.
6. Who Will Oversee My Workers’ Compensation Program?
The answer to that question is up to you, but typically it’s left in the very capable hands of your human resources department.
If you don’t have a human resources department, then you can place the responsibility of whoever oversees the most employee benefits and operations.
What’s important is that the person responsible understands your coverage and keeps open communication with your provider.
Invest In Your Workers’ Compensation Program Today!
Now that you have a better understanding of what a workers’ compensation program means to your business, it’s time to invest in one for your operations.
Looking to understand the desires of your employees a bit better? Be sure to read this article on the needs of your employees and how you can reduce turnover.
For more inquiries, please feel free to reach out via our contact us page and we’ll be happy to assist you further.