Would Workers Compensation Coverage be Advantageous to my Business?

Your local or regional laws may not require your company to maintain workers compensation coverage as part of your business insurance policy. But, just because this is so does not mean you necessarily want to do without it. Some areas require that a company has worker's compensation if a certain number of people are employed at the company. For example, laws in your area require that workers compensation coverage be in place for companies that employ five or more workers. Your company can legally do without this coverage if it only employees three people.

However, there are many reasons why you may not want to be without workers compensation coverage. Just because it is not a requirement to hold workers compensation coverage does not mean your company is not responsible for paying medical bills in the event of an employee being severely injured on the job. If you are unable to foresee your business being able to pay many thousands of dollars out of pocket to cover your worker's injuries, you may want to have a workers compensation plan in place.

How Do I Know if I Can Safely Do Without Workers Compensation?

That is a question only you can answer. If your company falls within the legal range of employees hired which does not require you by law to have workers compensation in place, you can safely do without this coverage in one sense. That is, you can operate your business legally without carrying the additional costs and expenses of an individual workers compensation policy. However, make certain to consider seriously the level of risk your employees face on the job every day.

If you are in a small office space with a few employees who spend most of the day at a desk typing or making phone calls you operate a relatively low-risk business. You can assume your workers face much less risks of getting injured on the job than others who work in the landscaping or construction industry, for example. In this instance, you may choose to do without a workers compensation plan.

Just because your business operates in an office does not mean accidents will not happen. In the event something were to occur at your place of business which resulted in serious injury to one of your employees, the company would be responsible. When you consider that you do not know exactly what kinds of injuries your company would face paying, do you want to assume the risk of being without workers compensation? The cost of the coverage itself can be far less than the cost associated with medical expenses.

Should my Company Invest in Workers' Compensation?

Take time to really consider your company's particular situation before making the decision to do without workers compensation insurance. Workers compensation insurance can be an additional expense to a company. However, as with many other forms of insurance for a business, it is possible that it costs less to have that insurance in place than to do without it.

Accidents happen in a variety of situations and places. You cannot always assume that a seemingly safe, sedentary office job is immune to people getting seriously injured there. Do not take chances with your business and the valued employees it relies on to succeed each day. Know that the advantages of workers compensation can benefit your business in many ways just as other forms of insurance can. As with other forms of coverage, it is often more valuable in the long run than the expense it costs you today.

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