January 30, 2020
Blog As a business owner, you need to protect your business when accidents happen. Maybe you already have insurance that covers your property and equipment. But still, you might think, “Do I need worker’s compensation insurance?”
The average worker’s comp claim is about $21,800 for a workplace injury. If you’re a small business, paying an employee that much money out of pocket can impact your bottom line.
Worker’s compensation insurance helps protect your business from financial loss when an employee suffers an injury while on the job. Let’s look at five reasons why you do need worker’s comp insurance.
1. You Have Employees
Worker’s comp helps protect you and your employees when an injury occurs. It makes sense that if you have employees, this is one of the best reasons to have worker’s comp insurance.
Your employees are your company’s assets. Keeping good employees is a critical part of your business success. You want to do everything you can for them in the event one of them has an accident while on company time.
Worker’s comp is the best way to care for your employees—no matter your industry. We’ll talk more about risky businesses, but it’s essential to understand that a workplace injury can happen anywhere.
- Your office administrator slips on a coffee spill in the breakroom and breaks an ankle.
- Your backroom stocker lifts a heavy box and strains their back.
- Your floor salesperson walks down an aisle, and something falls from a shelf and strikes them in the head, causing a concussion.
- Your delivery driver gets in an accident on the freeway.
Any accident-related injury can be expensive. All employees need the protection of worker’s comp insurance. Your business does, too.
2. You’re Self-Employed
Do I need worker’s comp if I don’t have employees? Yes!
If you’re an independent contractor or self-employed without any employees, worker’s compensation insurance is a significant benefit to protect yourself if you’re injured and unable to work.
An injury can become expensive if you’re a sole proprietor—especially if you’re unable to work for a while.
How does worker’s compensation insurance help you?
- It helps provide for your medical bills. Can you pay your medical expenses out of pocket? You shouldn’t have to do that, even if you can afford it. When you’re self-employed and side-lined from your work, it can be tough to cover your medical expenses.
- It helps recover lost income. When you work alone, if you’re not working, you’re losing money. Lost income on top of medical bills piles up quickly. Worker’s comp helps recover a portion of your income while you heal.
If you’re the only income provider for you or your family, going without worker’s comp insurance isn’t worth the risk of an injury that keeps you from working.
3. You Operate a Risky Business
Do your workers work in an environment with a high potential for injury? You work hard to put training, safety precautions, and rules in place, but some industries have a high-risk for employee injuries.
Depending on your type of business, you could need more coverage than other businesses.
If you run any of the following types of skilled worker businesses, you’re putting your business at risk for expensive lawsuits without the protection of worker’s compensation insurance:
- General Contractors
- Construction
- Manufacturing
- Roofing
- Electricians
- Plumbers
- Welders
But, these aren’t the only kinds of risky businesses. Any time employees are in the field or dealing with patients, there’s an opportunity for injury. Property managers, healthcare professionals, and real estate brokers and agents need the protection of worker’s comp insurance.
4. You Must Follow the Law
Depending on the location of your business, your state probably has laws requiring businesses to buy worker’s comp insurance. Each state’s laws can differ, but it’s critical to follow these laws when operating a business.
You have the freedom to choose your insurance provider. However, you must work within your state’s laws to purchase the right kind of worker’s compensation insurance to meet coverage requirements.
5. You Don’t Want a Lawsuit
What’s more expensive than worker’s compensation insurance? A lawsuit.
Even if you win the case brought by an injured employee, the costs of a lawsuit aren’t worth going without this valuable insurance.
How expensive could it be? It’s pricey on many levels. Consider these expenses:
- Lawyers and court fees. A successful injury attorney can be costly. These costs add up quickly.
- Your time! How valuable is your time? It’s probably better spent running your business instead of fighting an injury lawsuit.
- Your reputation. You’ll probably lose the employee involved in the injury lawsuit, whether you win or lose the case. How about your other employees? Will they want to continue working for a boss who doesn’t offer worker’s comp if they also have an injury? Will you be able to recruit new employees with a “no worker’s compensation” reputation?
Again, your employees are your assets. You never want to get into a lawsuit with an employee over an injury.
One of the best benefits of worker’s compensation protection is the “no-fault” aspect. If a worker gets hurt, your insurance steps in to protect both your business and your employee.
Worker’s comp insurance helps injured workers with necessary medical treatment to regain pre-injury condition. Your policy also provides indemnity benefits to cover both lost wages and permanent impairment, if applicable.
Those benefits keep you and your business safe from the damage of a lawsuit.
Do I Need Worker’s Compensation Insurance? Yes!
Have we answered the question, “Do I need worker’s compensation insurance?” We hope so!
Your next question should be, “where can I get the best coverage to protect my business and employees?” National Workman’s Comp Solutions (NWCS) is your answer!
We have policy solutions for your industry—no matter what it is—and we tailor our services your specific needs. Get started with a free online quote!
