If you own your own business, and you don't carry worker's compensation insurance, you could be putting yourself and your business at risk. Even if you operate a small mom-and-pop store, you should still invest in worker's compensation insurance. The following are three important reasons why you should.
It's the Law
If you don't have worker's compensation coverage for your employees, you could be breaking the law. Most states have their own requirements for how many employees you must have before you're required to carry worker's compensation. In Alaska, you're required to carry worker's compensation coverage, even if you only have one employee, while employers in Arkansas don't have to carry worker's compensation insurance unless they have more than three employees. Before you decide to forgo worker's compensation coverage for your employees, you should check with your state requirements.
It Protects Your Business Against Law Suits
You might think that you're saving money by not providing worker's compensation coverage for your employees. However, if one of your employees suffers a work-related injury, and you don't have worker's compensation insurance, you might find yourself the party to a law suit. A work injury lawsuit could leave you responsible for a huge cash payout, especially if you're found responsible for the injuries, if the work environment was unsafe, etc. Don't take chances with your financial stability. Protect yourself against lawsuits by having adequate worker's compensation coverage for your employees.
It Provides Safety Monitoring for the Workplace
Take a look around your commercial property. If you don't know what you're looking for, you might not recognize the safety issues that your employees are exposed to. When you have worker's compensation coverage, you'll have an extra set of eyes that will point out the safety issues for you. Worker's compensation coverage provides safety monitoring, which will help you identify areas of your workplace that pose a safety hazard for your employees. Once those hazards are identified, you'll be able to remedy the situation before any of your employees suffer work-place injuries.
If you own a business, you need worker's compensation insurance. Without it, you might find yourself exposed to liability issues. You might also find yourself on the wrong side of the law. For more information on how worker's compensation insurance can benefit your business, be sure to speak to your insurance agent. They'll make sure you have the coverage you need to protect your company and your employees.