Employees are the key to the success and productivity of any business. Even if one employee is unable to work, your company’s productivity can be delayed or decreased, especially if you’re a small-to-medium-sized business. By having the right workers’ compensation insurance in place, small business owners can protect their employees.
What Is Workers’ Compensation Insurance for Businesses?
By getting workers’ compensation for your business, you can protect your employees in the event of work-related accidents, repetitive stress injury, and occupational illness.
Work-related injuries can happen in any workspace. Despite the employee having health insurance coverage, the employer is liable to pay for their medical bills resulting from workplace injuries.
If you do not have workers’ compensation insurance, you will have to pay for such expenses out of your pocket.
Workers’ compensation will also cover the loss of wages an employee faces while recovering from an injury. In case a worker has suffered permanent physical injury, this compensation will cover a portion of their wages as well.
When Does a Business Need Workers’ Compensation Insurance?
In some states, not having workers’ compensation can lead to penalties and cancellation of business license. However, some states do not make it mandatory for businesses to carry the policy.
If you care for your employees and want to compensate them for their losses, workers’ compensation insurance is important.
If you are running a firm with a sole proprietorship, your health insurance will cover your medical expenses, eliminating the need for workers’ compensation. However, if your company has two or more employees, workers’ compensation policy can significantly reduce the risks of paying out-of-pocket for expensive workplace injuries.
Getting workers’ compensation for your business can be an excellent way to safeguard your employees. Do you have any additional questions about business insurance? Contact the experts at First Insurance Solutions. We are ready to help you with all your coverage needs.