March 26, 2021
Blog Are you a business owner that wants to protect your staff from a financial setback related to their injury? Do you want to turn your business model into a foolproof system? If so, then you need to learn all you can about workers’ compensation.
Doing so can help you understand the importance of workers’ compensation insurance and why all employers should be prioritizing it in their budget. When (not if) an emergency happens, workers’ comp will be there to protect you and your employee.
See below for an in-depth guide on why workers’ compensation is so important for your employee safety initiatives.
1. It Protects Your Relationship With Employees
Every company has its star pupils—those that are considered “irreplaceable” due to their high productivity, positive attitude, knowledge, experience, etc. As you well know, employers will do almost anything to protect those top-tier workers and prevent them from going elsewhere.
So imagine the horror of finding out that one of your best workers was injured on the job. Not only will it keep them out of work for a while (which means lost wages for them), it will also cost them a fortune in medical bills to get back to 100-percent.
Without workers’ compensation, you (the employer) would be held financially responsible for all the costs of their work-related injury. Not to mention the fees and penalties you’d have to pay for not having a policy (which is illegal). That’s the kind of cost that your company may never be able to financially recover from.
Thankfully, there is another way. By investing in workers’ compensation, you’ll be able to avoid those hefty fees and ensure that your employee gets the compensation they’re entitled to.
When they go to file a claim, your insurance provider will take over communications to get them the coverage that they need, thus removing you from the equation. Since you won’t be involved in this highly stressful process, you and your star employee’s relationship is protected from harm.
2. It’s Legally Required
Did you know that worker’s compensation insurance is legally required on both a federal and state level?
When it comes time to find a policy, many employers are shocked to find out that their state requires it in some form or fashion. Not only that, they have different regulations on the subject.
For example, the state of Alabama requires that workers comp coverage be provided by any employer with five or more employees. There are some exceptions in certain industries, but this is the main guideline to follow.
Meanwhile, in the state of California, an employer is required to have a workers’ compensation policy if they even have one employee. Furthermore, if your headquarters is out of state, but you still have workers in Cali, you’re still legally inclined to offer workers’ compensation for all of them.
You must follow these state regulations. If your company endures an emergency and you’re caught without workers’ comp, there will be hefty fines ahead.
The state of Florida, for example, will fine you double what you would have paid in worker’s compensation premiums for as long as you went without having a policy. Make sure that you find a trusted provider to invest in today.
3. It Encourages Employee Safety
Something happens when you (as an employer) prioritize workers’ compensation for your employees. It shifts the focus to a safer workplace, which will benefit everyone involved—your employees, your clients, and even your business!
Believe it or not, shifting your focus to keeping your workers safe can help your company see profit margins and productivity it’s never seen before.
It’s been proven to work! When Paul O’Neill stepped in as CEO of Alcoa, his first and only priority was to focus on upping worker safety. His goal? To have zero accidents… They have branches all around the world with thousands of employees. It didn’t matter to him!
Long story short, in achieving 100-percent workplace safety, Alcoa saw profits it had never seen, even with its profitable history. The focus on safety streamlined production gave workers purpose and negated wasteful habits that were costing Alcoa thousands of dollars.
4. Gives Your Employee Financial Protection
When a workplace injury occurs, your top priority should always be the health and safety of the injured worker.
With proper workers’ comp insurance in place, you’ll have more peace of mind, knowing that their finances will be taken care of. They won’t be suffering a financial setback from this.
That can help them and their family focus on finding successful recovery and getting back to normal as quickly as possible.
5. Financial Protection for Your Company
Of course, your employee isn’t the only one that has their finances protected by workers’ comp during an emergency. Your company will as well!
As we pointed out earlier, without workers’ comp, your company would be held financially responsible for the employee’s medical bills, lost wages, long-term disabilities, and so forth.
Thankfully, workers’ comp offers another path. With a helpful and trusted provider in place, your company’s future is secure. By simply having a policy, you avoid the chance of ever paying fines or penalties.
Invest in Workers’ Compensation for Your Company Today
Now that you have seen an in-depth guide on the importance of workers’ compensation for your business, be sure to find a provider you can trust.
Start by reading this article for more information on work safety tips that can protect both you and your employees. To get started, please click the “instant quote” button at the top right of this page.
