When it comes to running a small business, there are many critical issues to consider. Deadlines, revenue, and client meetings might all be top-of-mind at any given moment. However, one thing that you may not give a lot of thought to is workers’ compensation insurance. This essential insurance policy is important for large and small businesses alike. Let’s take a closer look at this valuable resource and how it can help your team thrive.
Workers’ compensation refers to the process of an employer covering the cost of an employee’s injury that occurred during a job-related task. This typically includes associated medical costs as well as missed wages while the employee is unable to work.
Workers’ compensation insurance shields organizations from the financial weight of these kinds of claims. It protects the financial demands of businesses as well as the livelihood of employees. It also serves as a safety net for both, supporting each of them after a work-related injury or illness.
Employees must meet basic requirements to qualify for these benefits. They must be a current employee and their employer must carry workers’ compensation insurance. The illness or injury must relate to work, and the employee needs to report it by a certain deadline.
Some companies may not need this type of policy. In fact, there are many different factors that affect whether or not one must have coverage. One major aspect is location, as different states maintain different laws surrounding the matter.
Another factor to consider is the size of an organization. Depending upon the state, businesses with certain numbers of employees will need coverage. Also, the number of full-time and part-time employees often comes into play. For instance, the state of Nebraska requires workers’ compensation insurance for small businesses with at least one employee.
The vast majority of businesses must carry workers’ compensation insurance by law. Make sure to check with your respective city and state laws to verify your organization’s requirements. Companies that fail to carry a mandatory policy open themselves up to major fines, lawsuits, and possible criminal charges. For those that aren’t required to carry it, it’s still incredibly beneficial for both employers and employees.
The most obvious advantage to the employee is peace of mind. If they happen to get hurt on the job, they know that it’s not the end of the world. In many cases, they will continue to receive income and won’t have to worry about some, if not all, of their medical costs. This is reassuring in hazardous industries involving construction, demolition, and heavy machinery.
There are also many advantages for organizations, too. One of the most important benefits is fiscal protection. Medical costs are expensive and a worker suffering an injury at a business that doesn’t have this policy may cause it fiscal distress or even ruin. This is one of the reasons why workers’ compensation insurance for small businesses is especially critical.
This coverage doesn’t just protect organizations from the fiscal costs of covering employee injuries and lost wages. It often saves them from the threat of civil lawsuits associated with most of these injuries. Workers’ compensation insurance also makes the claims process a breeze, saving you time, stress, and money.
Navigating the matter of business insurance on your own can be tough. If you need any insurance policy for your small business, please reach out today. Our team connects businesses with the right carriers and coverage to fit their unique needs. We can help give you peace of mind with the perfect plan at an affordable rate.