When you’re a business owner, it’s easy to let the thought of insurance fall on the backburner.
After all, thinking about insurance means that you have to think about the worst-case scenario.
That’s when an insurance policy pays out.
No one who has put thousands of hours and even more dollars into a company wants to think about that kind of thing.
But at the end of the day, the fact of the matter is that if you don’t take the steps to protect your business now, you could be kicking yourself later.
What is workers compensation insurance?
This is a question that will come to the minds of many a business owner who has employees working in an industry where personal injury is not altogether uncommon.
In this article, we’ll explain the basics of workers compensation.
This will help you figure out whether or not you need workers compensation insurance at your company.
What Is Workers Compensation Insurance?
Simply put, workers compensation insurance is insurance against the risk of your employees getting injured on the job.
Let’s say that you run a general contracting company.
While an employee is repairing a deck for one of your many customers, he or she falls off and breaks his or her leg. The medical bills that result are significant.
The worker is unable to do their work for a significant amount of time. Thus, they need compensation for lost wages.
They may need to hire a workers’ compensation lawyer to receive damages.
However, if you have the right insurance program in place, this workers compensation lawyer will work with the insurance company to ensure that the employee gets what they need as compensation at a minimal out-of-pocket expense to your business.
In these situations, you ought to retain legal counsel as well to ensure that your company is doing everything in the proper manner.
Is Workers Compensation Insurance Mandatory?
Workers comp laws vary from state to state.
As a result, only you can determine whether or not workmans compensation is a government-ordained requirement for your company. Check with your region’s labor laws to see if you need to pay this premium.
However, even if workers compensation insurance isn’t mandatory in your state, it’s still an excellent idea to carry this insurance regardless.
Even the smallest medical injury can result in significant medical bills.
And when you add in lost wages to the mix, that’s a very significant cost that you would otherwise be liable to pay for out of pocket.
Protect Your Business
It may not be the most pleasant topic to think about, but at the end of the day, it is your responsibility as the owner of the company to protect your business from the worst-case scenario.
Thus, now that you know the answer to the question of what is workers compensation insurance, there’s simply no reason for you not to protect your company with this type of insurance policy.
For more business advice, take some time to check out the rest of the articles on the website!