6 Reasons Workers Comp is Necessary for Your Biz

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When workers comp insurance is mentioned, most small business owners cringe and consider the extremely high premium costs. Small businesses have limited budgets, and anything that requires a significant investment seems risky. However, in the long term, workers comp is an affordable and essential tool to protect your business from the risk of injury, illness, and other losses resulting from hiring employees under your company. Below are six reasons why you should reconsider your attitude towards Workers Comp:

1. Make Sure You Know Your Risks.

Before you hire employees and avoid workers comp, you need to ensure that your company can quickly meet the demands of a sudden illness or injury. You will likely hire older employees with higher health care costs if your business grows. Workers comp can help protect you against these risks. If you need to hire people quickly for a short-term project, you can avoid paying for workers comp until you hire a long-term employee. This can help you save money if you hire people from a staffing company or freelance workers. Workers comp insurance can help cover medical bills and lost income and protect your business against a lawsuit if an employee is injured.

2. Protect Your Investment In Employees.

When hiring employees, you show commitment to your business and the community. Many people want to work for a company and feel proud to be part of the company culture. But, at the same time, they are busy with the daily grind and can easily get injured or be infected by an infectious disease, like an autoimmune disease. In the long run, workers comp can protect your investment in these employees by paying for their medical care, lost wages, and death benefits for their families. These are only a few of the benefits of workers comp insurance. You will also save money on general liability insurance and be able to attract and retain top-level employees.

3. Safeguard Your Business Against Lawsuits.

A one-time accident or illness can result in massive lawsuits that force your business to close or sell at a lower price. Any injury or disease that is work-related is covered by workers comp. Suppose the employee’s work-related injury, medical care, and disability are covered. Their dependents are covered if the employee dies from a work-related illness or injury. Workers comp will help cover the cost of their medical bills and lost income if a customer or client is injured on your business’s premises. If a client dies from a work-related injury or illness, the workers’ compensation death benefits will help their dependents.

4. Provide Medical Benefits For Employees Who are Injured.

If your employee becomes infected with a communicable disease or sustains a work-related injury, workers comp will help pay for their medical care. Employees will appreciate not having to pay expensive medical bills and will be more likely to stay on the job. They won’t have to worry about losing their house or being unable to pay their medical bills. Placing the financial burden of medical bills on your employees doesn’t make sense. You’ll have to pay those bills if they don’t. Workers comp also provides disability benefits that will help your employees stay on the job.

5. Provide Death Benefits For Your Employee’s Family.

Workers comp will pay the death benefits to their dependents if your employee dies from a work-related injury or illness. If your employee dies from a disease that isn’t work-related, you’re responsible for providing that benefit. Make sure to consider all of the options that may be available to help provide death benefits. Some insurance companies may offer group plans to help you provide death benefits. Death benefits are often overlooked, but they can help your employees’ families who have passed away receive the financial support they need.

6. Look Into Insurance Quotes.

Before hiring employees, you should get a workers’ compensation insurance quote. The insurance agent can help you decide how much coverage you need. It would help if you also chose whether you want to purchase a commercial policy or a private policy. Commercial policies are more expensive but provide better coverage and can be used by multiple businesses. Personal policies are cheaper but only valid for a single company. If you decide to hire employees and avoid workers comp, you should know that your premiums will likely increase. Your premiums will increase even more if you hire employees with a higher risk of injury, such as those working in a dangerous industry or with a history of injuries.

Conclusion

When you hire employees, you create a long-term relationship that will affect your company’s bottom line. You want to hire the best employees possible and keep those employees as long as possible. A workers comp insurance plan tailored to your workplace can help you do both.