According to the US Bureau of Labor and Statistics, at least three million nonfatal work-related injuries and illnesses occur annually.
With such statistics, it is logical that businesses invest in workers comp insurance to protect their business.
Here are five reasons why small business insurance is essential, or you can click here to learn more.
1. Protect your Business’s Finances
Workers comp insurance ensures that an employee is taken care of in the event of a workplace-related injury. Without insurance, a business would have to cater for these expenses using company money, which may harm a business financially given the high cost of medical bills and lost wages an employee should receive.
Therefore, small business insurance helps your business avoid the actual expenses arising from workplace-related injuries. This protects your business from these expenses that can cause irreparable financial harm, thus extending your business life.
2. Adhere to State Laws
The law regarding insurance differs between states. Therefore, small businesses need to research their state of understanding the legal stipulations regarding insurance. Your state may require small businesses to have workers’ comp insurance like medium and large companies, depending on the number of employees you have and the degree of accident or illness frequency in the workplace.
Some states allow businesses with at least one employee to invest in small business insurance. So, it is important to research your state to determine whether you are required to get workers’ comp insurance.
3. Protect your Employees
Workers comp insurance protects employees who experience job-related injuries and illnesses. They get coverage for medical expenses and lost wages to ensure their lives and families continue with life as when they were working. It is essential to take the most suitable cover for your business. For instance, if you work in a biological sciences field, you need coverage against illnesses and injuries. If in the construction field, you need a cover for different types of injuries. Also, if in the legal field, you need cover for protection against lawsuits. So, ensure you cover your employees adequately based on your work field.
4. Improve Employee Performance
Small business insurance improves employees’ performance because they know you have their best interest. If the workplace is highly risky, your employees will still put their best foot forward because they are covered. They know their medical bills, and lost wages will be covered if they get injured.
5. Save Costs
Failure to have small business insurance in a state that requires you to have insurance may result in significant penalties for noncompliance. The legal fees arising from this may be high and harm your business.
Small business insurance protects your employees and business from financial bankruptcy if a workplace-related injury or illness occurs. It covers employees who suffer from work-related illnesses by covering their lost wages and medical expenses. Without this cover, your small business would get to financial ruin in the event of a job-related injury because you would have to cover these expenses from your business finances.