Workers’ compensation insurance provides benefits to workers who get injured while performing their duties at work. The policy is a cooperative agreement that reduces the legal battles and back-and-forth on financial responsibility that can arise between employees and the business when they are injured at work.
When a small business gets workers’ compensation insurance, its employees can claim compensation for injuries or disabilities that occur while discharging their duties at work. The policy covers medical bills and lost wages, among other things. The grand bargain for small businesses is that they are financially cushioned from lawsuits and the requisite expenses.
Read on to learn more about what small business owners need to know about workman’s comp insurance.
Why Do Small Businesses Need Workman’s Comp Insurance?
In most states, small businesses are legally required to have a workman’s comp insurance coverage. Many states require all businesses to get the policy regardless of the number of employees; some even require it from sole proprietors.
Many small businesses that primarily have desk jobs skip this policy with the assumption that severe accidents are unlikely. However, according to statistics, your small business has a 50% chance of getting an injury claim within ten years. Operating without coverage may also lead to penalties and fines.
A workplace injury compensation claim can quickly drain your budget and impair your future operations. From the medical costs, lengthy lawsuits, and lost wages, among other damages. You need coverage because all these external pressures can lead to the closure of a small business.
Shield your resources by committing to coverage.
How Much Coverage Does A Small Business Need?
The cost of your workman’s comp insurance will depend on many factors, such as the number of employees, the risk they’re exposed to and your history of workplace accidents. If your small business is in a high-risk industry like construction, you’ll typically have higher premiums than one that deals in office work.
When getting coverage, you need to understand the cost-benefit analysis of your coverage. Remember that even with health insurance policies, the same may not cover your employees for workplace accidents. Paying premiums is often much cheaper than having to foot lost wages and medical bills out of pocket at an unprecedented time.
How To Make A Claim
The exact procedure for making a workman’s comp claim will depend on your provider. However, there are a few standard procedures and tips. Even when they seem minor, report all workplace injuries to your insurer as soon as they occur,
What appears as a minor injury, such as a honey collector in a small honey business getting a bee sting, can escalate to something worse, like an infection. A timely report to your insurer ensures that they can so-relate any future injury to the first without suspicion or having to prove that the first injury was work-related.
Once you report the claim, your insurer handles the rest of the workman’s comp insurance compensation process with the employee, allowing you to focus on the business.
Transfer The Financial Risk Of A Workplace Injury
Small businesses often face many financial decisions that require you to prioritize and cut out a few. Workers’ compensation coverage is a significant investment that protects your small business. Facing a lawsuit demanding compensation for expenses resulting from a workplace accident can sink any flourishing new company. Transfer the financial risk by getting coverage.
