Why You Should Purchase Workers' Compensation Insurance
Most businesses require multiple forms of insurance for protection. Although many people only think of liability insurance, workers' compensation insurance is another coverage you shouldn't ignore. The following are some of the benefits you can enjoy with the coverage.
Attract and Retain Talent
Discerning employees will only work with employers who have workers' compensation insurance. The employees know that, in case of a workplace injury, workers' compensation will:
- Pay their medical bills
- Pay part of their wages
- Cover their vocational training
Workers' compensation even pays disability and death benefits – the latter in case an employee succumbs to a workplace accident. Thus, you might miss good talent if you don't have the coverage.
Boost Employee Morale
Even the employees you already have might not be diligent enough if they learn you don't have workers' compensation insurance. Your employees want to know that you (via workers' compensation insurance) will take care of them in case of an accident. Good employee morale increases productivity.
Grow Your Business
Workers' compensation insurance can help you get more clients and grow your business. For example, some clients won't deal with you if you don't have workers' compensation coverage. They don't want your workers to complain to them in case they get injured on the job. In some cases, workers' compensation coverage even forms part of contract requirements.
Satisfy Government Requirements
The government requires some businesses to carry workers' compensation insurance. State laws determine who should carry the insurance. A common stipulation is that any business with employees must have the coverage. Penalties for not having the insurance include civil and monetary fines.
Protect Yourself from Lawsuits
Without workers' compensation coverage, employees who incur workplace injuries can sue you for damages. For example, a machine operator who losses a limb can sue you for damages. Such lawsuits can cost you a lot of money in terms of compensation, bad publicity, and legal services. You don't have to worry about such things if you have workers' compensation insurance.
Protect Yourself in Case of Injuries
Lastly, if you are an owner-employee, then workers' compensation can also cover you for workplace injuries. The coverage can pay your medical bills in case of a work-related injury.
Hopefully, you haven't been operating your business without workers' compensation insurance. If you have, then contact an insurance agent as soon as possible to help you determine the coverage you need. The agent can also advise you on tips and tricks to minimize insurance costs.
To learn more about workers' compensation, contact a specialist near you.