Compared to larger corporations, small businesses have fewer risks requiring insurance. However, every business should have some specific insurance coverage from the onset. Workers’ compensation insurance covers compensation for employees who suffer job-related illnesses and injuries.
Small businesses need the financial shelter offered by workers’ comp coverage. Without one, small business owners have to cater for any injured employee’s medical bills and, in severe cases, loss of wages out of pocket. With limited resources when starting, such expenses could devastate a small business’s finances. It could even lead to its death.
Read on to learn more about why small businesses need workers comp insurance
There’s A High Chance Your Small Business Will Still Get An Injury Claim
According to statistics, whether you take up workers comp insurance or not, there is a 50% probability that a small business shall experience an injury claim within ten years. Accidents are unfortunate unpredictable occurrences.
While you may argue that you will cross that financial bridge when you get there, remember that you cannot predict the extent of the injury. For instance, a simple fall from sliding could hurt an ear, which later develops into a hearing impairment. Imagine having to cater for a lifetime of loss of hearing and any resultant medical bills and or loss of hearing.
Workers Comp Insurance Are Mandatory In Some States
Whether or not you should get workers comp insurance may not be entirely up to you. In some states, all small businesses with employees must take up a workers’ compensation cover for them.
Do not dismiss coverage until you check your state’s insurance laws for small businesses to avoid being on the wrong side of the law. If it’s a requirement, conduct the risk assessment, and look for a reputable insurer for coverage.
Improved Employee Work Experience
Taking up workers comp insurance will require you to set up safety precautions, emergency response procedures, and conduct regular employee safety training. These will generally improve your employee’s work experience and prevent workflow disruption.
Attempts to mitigate claims through employee wellness will improve your employees’ general health. You could incorporate comprehensive plans like negotiating with the local gym to offer your employees a discounted membership. Physically fit employees are likely to react better and faster in incidents and emergencies, while general wellness will improve an employee’s overall health.
As your small business expands, proper safety precautions and having workers’ comp insurance will encourage potential employees to join your team. Employees are drawn to employers that show concern for their general well-being.
Laying out the procedure for making claims and creating a strategy for preparing injured employees to work will also create a peaceful work environment. Employees will confidently undertake their duties from the motivation that they are protected in case of any unforeseeable circumstance.
Protect Your Small Business With Workers’ Comp Insurance
The perks of having workers’ insurance coverage heavily outway any reservations a small business owner may have, especially costs. Having to cater to an employee’s medical bills is financially draining, disrupts your workflow, and, worse still, could lead to a lawsuit. The thing about accidents is that they are unpredictable, and your financial stability as a small business is not worth the gamble. Better safe than sorry; protect your business!
