Workers’ compensation is a form of business insurance providing financial coverage to employees hurt on the job. It is usually available to all companies. Legally, most states require mid- to larger-sized companies to maintain policies. However, it benefits all companies in a variety of ways. Should you invest in workers’ compensation for your small business?
What Are Your State Laws?
State laws determine if you must have workers' compensation coverage in place. In some states, all businesses with a single employee must have this type of policy. In others, you may need to have it if you have 10 or more employees.
It is important to learn if this is a requirement under your state laws. To do this, contact your Louisiana business insurance agent. Ask questions about this requirement. You can also learn more information under your state’s workers’ compensation board.
What If You Do Not Need It?
Some business owners may feel having a workers’ comp insurance policy is an added cost. Some may not obtain it because they want to save money. However, in nearly every situation, it provides important financial protection for your business.
Imagine an employee suffers an injury. If you operate an office, for example, a worker trips over the carpeting and falls and hits their head on a corner of a desk. In this situation, the employee needs to go to the hospital in an ambulance. He or she might undergo expensive testing. The employee may suffer a concussion or more serious consequences. He or she may be out of work for a week or longer. All these components add up to you. Because the accident occurred on your property during the course of business, your company may be financially responsible for the employee's losses.
Even without workers’ compensation, your company can still be responsible for such losses. Beyond medical bills, this may include lost time at work, lost benefits, loss of ability to work, long-term recovery needs, and pain and suffering. Even in a minor instance, the losses your company could suffer from this situation are significant. If you have workers’ comp coverage, though, much of this comes from your policy, not out of pocket.
Keep in mind the cost of workers’ comp coverage depends on the risks associated with the business. If you are a small company in a non-high risk environment, you may not have to spend much to put a policy like this in place. Still, don't neglect getting coverage.