Do you own a small business or are you about to start one? Whatever your situation may be, you will need worker’s compensation insurance. Even if you have everything else that is required such as your business license, permits and TIN, you might miss out on this particular provision and it is definitely an important one. Worker’s compensation insurance is mandatory in many states and is also helpful in keeping you and your workforce safe. Moreover, with the advent of pay as you go worker’s comp, it has become easier than ever before to manage your premium payments.
Worker’s compensation is a type of insurance which covers medical and other rehabilitation costs if your employee is injured on the job. At times, well-managed worker’s compensation plans also cover some part of the lost wages for the time period the employee is out of work. This enables the employee to have peace of mind and limits the likelihood of them suing you. As a business owner, you also have the peace of mind knowing that your employee is safe and you don’t have to worry about their medical bills.
As a small business owner, you have well-trained employees who may be relatively new to the field. This means that they might be at a higher risk for an on-the-job injury. There are instances where clients have refused to work with a business based on the absence of worker’s compensation. You don’t want that for your business, do you? Taking these things into consideration, you should opt for worker’s compensation as soon as possible if you haven’t signed up for it already. The fines for not having some type of worker’s compensation can be pretty hefty and the repercussions could ruin your business. Having worker’s compensation will hurt less than paying unnecessary fines.
Here are some reasons why small businesses should not avoid worker’s compensation insurance:
- In the case of an on-the-job injury, you might not be in a financial position to help your employee with medical bills. If the employee needs extensive medical attention, you, as the business owner, will be liable for the expenses.
- Even if you are able to take care of your employee in the hospital by paying the medical bills, there is a chance you might not be able to support his family when he is unable to work and the doctor advises rest. This non-earning phase due to the injury might leave the employee and his family without resources which can cause a financial burden for you.
- At times, it is not even just the medical bills and post-injury sustenance – it is more about being there. This is where you must step in, no matter what! Being a small business owner, your relationship with your employees matters. Insurance will take the financial burden off your shoulders and you can give your employees the support and respect they deserve. Simply checking in with them goes a long way to getting your employee back to work.
Typically, worker’s compensation insurance is required as soon as you have one or more employees who are not business partners. With changing times and technology in our lives, pay as you go worker’s compensation has become an easier method to pay the premiums for worker’s compensation. Several businesses are opting for pay as you go plans over traditional methods. The traditional method has a degree of guesswork involved in it, but with pay as you go worker’s compensation, billing becomes precise and accurate. So, put your best foot forward and choose a suitable pay as you go worker’s compensation plan as soon as possible.