5 Benefits of Workers Compensation for Small Business Owners
In 2021, there were an estimated 2.6 million workplace injuries in the United States. A large percentage of these injuries likely resulted in Workers' Compensation payments to be made.
If you own a small business and hire employees, you should think about obtaining Workers' Compensation. A Workers' Comp insurance policy could provide financial assistance in the event of a workplace injury.
Curious about the benefits of Workers' Compensation for small business owners? Read on for more information!
Benefits of Workers' Compensation for Small Business Owners
If one of your employees suffers an injury while on the job, you could be required to cover expenses associated with the injury. Workers' Compensation could cover their wages during their recovery. It could take care of medical costs associated with the injury as well.
Fortunately, these costs do not have to come out of your pocket. Paying for Workers' Compensation insurance can provide many benefits to you as a small business owner, including the following:
You Could Save Money
One of the biggest benefits of having Workers' Compensation insurance for your business is that you can save money. This is because, if an employee suffers an injury while working, you may not have to pay injury expenses out of your own pocket. It can instead come from your insurance provider.
Now, this doesn't mean that you can avoid all costs. You have to pay a premium for your policy. However, this could be more cost effective in comparison to what a payout can cost.
Meeting State Regulations
In most states, employers are required to have Workers' Compensation insurance. If you operate a business without coverage in one of these states, you could be penalized and face fines or jail time. Therefore, if you run a business and have employees, you may be advised to take out a policy.
Helping to Safeguard Your Business
You're likely running a small business and bringing in a decent amount of revenue. If one of your employees gets injured while on the job, you may not have the funds to stay afloat financially while paying their medical bills.
If your business lost money, it could cause you to go under. You can rest assured, this may not happen if you have a Workers' Compensation insurance policy.
Workers' Compensation can allow you to cover the employee's injury-related expenses.
What Does Workers' Compensation Cover?
We've discussed the primary benefits of Workers' Comp for small business owners. Now, let's discuss what Workers' Compensation can cover. Most of these policies can cover the following:
Wages Lost Due to Injury
If an employee gets injured while on the job, Workers' Compensation insurance can cover the wages that they lose as a result of not being able to work. So, if the injury requires them to be out of work for a few days, the Workers' Compensation insurance policy can pay out the wages for that employee.
This can prevent the employee from stumbling into financial hardship. It could help keep them afloat while they recover.
Medical Expenses Related to the Injury
Workers' Compensation can also cover medical expenses related to the injury that was incurred. Let's say the employee was in the hospital following the injury. The Workers' Compensation policy can cover the cost of the stay plus the costs of treatments the employee received while in the medical facility.
Rehabilitation Expenses Related to Injury
In most cases, Workers' Compensation can also cover rehabilitation expenses related to the injury. So, if an employee needs physical therapy for their injuries, Workers' Compensation could help take care of that expense.
Do You Need Workers' Compensation as a Small Business Owner?
As noted above, most states require businesses to have Workers' Compensation insurance. That said, some states only require it once you have 2, 3, or 4 employees or more. For information on Workers' Compensation laws in your state, it is recommended that you check with your state's governing board.
Even if Workers' Comp is not legally required, we recommend that most businesses with at least 1 employee obtain coverage. A single injury to an employee could put you at financial risk. If your business is particularly small, that injury could even endanger your business financially.
It may not be worth it to take the chance. Get Workers' Comp and help ensure that you may be able to financially cover employee injuries.
Looking to Purchase a Workers' Compensation Insurance Policy?
Workers' Compensation can be vital not only in that it can help save you money, but it may be required by many states. With this policy, you could have the funding necessary to compensate employees for their workplace injuries. In the long run, this could help keep you running business as usual.
Looking to purchase Workers' Compensation for small business owners? Look no further than PolicySweet®. We provide Workers' Compensation policies to several types of businesses.