If you operate a small business, chances are, you already have workers’ compensation insurance in place. No matter what sector your business is in, you would have had to consider workers’ compensation during the planning stage. This article will explain how workers’ compensation protects your business
Meet Legal Requirements
All businesses are required to have workers’ compensation insurance. Whether you have five employees or 500, you still need to have this type of plan in place. It helps you to avoid sizable medical and legal expenses.
if you’re operating a small business and don’t currently have workers’ compensation insurance, you’re violating the laws of the state. You’ll need to take the steps necessary to obtain a plan that meets your needs. this will help you to be in line with the legal requirements for operating a business in your state.
Financial Protection
When a worker becomes injured on the job, they’ll often take some time to recuperate from their injuries. This may be anywhere from a few days to a couple of months or more. During that time your business will still need to pay them.
Workers’ compensation insurance will help you to cover the cost of paying workers when they are unable to work due to injuries or illness. This allows you to hire a replacement while they’re recuperating and still be able to cover the cost of both sets of wages.
Attract Quality Talent
Talented workers gravitate to environments that allow them to maximize their earning potential safely. When workers become aware that a plan is not in place to provide for their medical expenses if they become injured, they are likely to leave for better work conditions elsewhere. The California Work Injury Law Center can provide you with information on how abiding by workers’ compensation laws can improve your small business.
When do you need workers’ compensation?
In most states, you’re required to have workers’ compensation in place as soon as you hire your first employee. Some states require that you have a plan when you have your third or fourth employee. In Texas or South Dakota, this type of plan is optional but recommended.
Hopefully you’ll never have to make use of your workers’ compensation insurance. Most employers need it because workers do become injured while lifting boxes, loading delivery trucks or conducting other regular activities on the job. In any situation where a worker becomes ill or injured on the job, you can easily cover their expenses through workers’ compensation insurance.