Should you provide workers compensation insurance for your employees? There might be a few more benefits than you expect. First, let’s look at what this type of insurance entails, and then why you should already have a scheme in place.
What is workers compensation insurance?
This type of insurance will pay out if one of your workers is injured or becomes ill while performing any work-related duties. As an employer, you may be required by law to provide the following:
- Compensation benefits paid on a weekly basis
- Expenses relating to medical and hospital bills
- Cover for the cost of rehabilitation services
- Replacement of personal items damaged in a work-related accident, such as glasses
- A lump sum payout in the case of death or permanent impairment
The workers compensation insurance scheme you have in place will cover these expenses, rather than forcing you to pay them out of your operational budget.
It’s a legal requirement
One big benefit of having insurance for workers compensation is that you’ll be operating on the right side of the law! It’s compulsory for business owners unless you are exempt. The possible scenarios leading to exemption include factors such as being a sole trader, not hiring a large number of employees, not having a large turnover, and so on. You can check up on the rules for your particular state to find out whether you’re exempt.
Assuming that you are part of the majority who are required to carry coverage, and you don’t, then the consequences could be serious. A large fine could leave you worse off than if you had taken out a policy in the first place – and you won’t get any of the benefits associated with it. You might even be sentenced to a jail term as the business owner.
Save yourself the fees
With any business, there could be a likelihood at any time that an employee is injured in the course of their work. Contrary to popular belief, accidents can happen in any work environment, not only those related to heavy machinery. Carrying boxes, climbing a ladder, using a knife, even walking up stairs – these are all actions that could easily result in an injury if something goes wrong.
Any employee on any day during any activity could potentially be injured, and sometimes seriously. That means you’re facing a strong likelihood of having an injured employee at some point in time. If you don’t have insurance, then all of those costs come right out of your own profits. Even if you are an exempt business, you might want to consider getting insurance to cover the costs that would be incurred.
Reassure your employees
Finally, your employees are likely to feel safer at work and happier in their job if they know that you have them covered. You might even find them more likely to join your team or remain with you over time.
All of this should add up to show you that you’re sorely in need of a workers compensation insurance scheme. If you don’t have one already, look into it today.