No matter the size of the company, any business that hires employees needs to get workers’ compensation insurance coverage. Workers’ compensation can help protect your company from the need to find the funds to cover a workers’ compensation claim. Without this protection, your business can be held liable for legal fees, damages, and other out-of-pocket expenses that may be incurred if an employee is injured or becomes sick in the workplace. Some of the main reasons why all small businesses that hire employees should have workers’ compensation insurance include:
The fact that it’s probably required by your state is one of the most important reasons why your small business should have workers’ compensation insurance. Many US states now legally require any businesses that hire any number of employees to carry workers’ compensation insurance to ensure that employees are protected. The requirements may vary between states, so it’s worth looking into the rules where you are to find out what you need to be compliant. In some states, you need to carry workers’ compensation insurance from the moment that you hire your first employee, while in others you can reach a certain number of employees before you will be required to get it.
More Business Funding
When you have workers’ compensation insurance coverage for your small business, you may find that getting funding such as investments, loans, and business credit cards is easier. This is because both investors and traditional business lenders look at your level of risk when a decision is made on whether to fund your company. Without workers’ compensation insurance in place, this could be putting the money at risk in the event of a claim.
Easier Hiring Process
Small businesses that have workers’ compensation coverage will often find hiring employees an easier process. Even if you are not legally required to have this insurance policy, it’s worth having as it will give your current and future employees more peace of mind, which could help you when it comes to finding the best talent for your company. Carrying workers’ compensation, even if you are not required to, can be a very valuable recruitment tool.
Protect Your Business Financially
The truth is that no matter how hard you work to ensure that your employees have a safe environment to work in, accidents can happen at any time and anywhere, and you might be held liable. Without workers’ compensation coverage, you could be liable for a huge bill if you need to pay damages, medical bills, and other expenses in compensation to an injured employee. Workers’ compensation insurance could literally save your business from a certain demise in the event of an employee bringing a claim against you if they become sick or are injured in your workplace.
Whether you’re hiring your first employee or putting together a larger team, there are plenty of important reasons why the most crucial insurance policy to get for your business as an employer is workers’ compensation.