Workers' compensation insurance is one of the most important insurance products businesses can buy for themselves. Of course, the truth of the matter is that you're buying this insurance to protect your employees from injuries, illnesses, and even deaths that occur while working for your business. So, how does workers' comp insurance protect your business? In all the ways listed below and many more.
Protects the Finances of Your Business
By offering workers' compensation protection to your employees, you are relieving your business of responsibility for many of the injuries, illnesses, and deaths that occur in the workplace. At least from a financial perspective. What this means is that the insurer provides payment for medical bills, rehabilitative costs, earning replacement, and other expenses that may arise for your employees who have become injured while working for you. Medical costs alone can be quite prohibitive, workers' compensation bears the brunt of those costs so your business doesn't have to.
Comply with the Laws in Your State
Every state is different and has different laws concerning workers' compensation protection requirements. Working with an agency that understands the laws in your city and state can help your business remain in compliance and avoid the unpleasant consequences of failure to comply with the law of the land on this high profile issue.
Not only is it the right thing to do for your employees and your business but it can save you a ton of money in legal fees, fines, penalties, and judgments awarded against you should an employee become injured without appropriate protection.
Provide Financial Protection for the People Who Build Your Business
You've built your business with the labor of the men and women who work for you. They continue to help you build your business each and every day. Some of them have jobs that are more dangerous than others. Providing workers' compensation insurance to your employees is not only legally required, but it also offers you a way to give back to your employees who know that their families will be taken care of if they are injured, killed, or fall ill on the job.
Avoid Legal and Financial Ramifications of Failing to Provide Workers' Compensation
According to the National Security Council, the average workers' compensation claim is approximately $40,000. That is money that will come out of your business coffers should a worker become injured without workers' compensation protection. That is just the beginning. Additionally, your business could face lawsuits from the family of the worker, fines from your state government, and loss of business due to bad press associated with failing to meet your obligation to your employees.
Workers' compensation might not seem like the big of a deal at first glance. However, doing business without it is a risky move.
For more information on workers' compensation, reach out to a local insurance agency.
