If you own your own business, now's the time to conduct an insurance inventory. If you find that workers' compensation insurance isn't included in any of your business policies, you might be at risk for some serious legal problems. If you only have a few employees, you might not think that you need workers' compensation insurance, but that might not be the case. States vary in their requirements for workers' compensation coverage. For instance, if you own a business in Arizona, you're required to maintain a workers' compensation insurance policy, even if you have only one employee.
If you're not sure that you need the protection provided by workers' compensation insurance, read the information provided below. You'll find three important reasons to add this valuable coverage right away.
Protect Your Employees
If you don't have workers' compensation insurance, you might be putting your employees at risk. Workers compensation insurance is designed to provide benefits for your employees, should they be injured in a work-related accident. Without that coverage, your employees might not have access to income while they're unable to work. Not only that, they might not be able to receive medical treatment for their injuries. To make sure that your employees have the protection they need, purchase workers' compensation insurance now.
Prevent Civil Lawsuits
If you opted out of workers' compensation insurance, you could be putting yourself at risk for civil lawsuits. Without workers' compensation insurance, your employees could sue you in civil court for any injuries they sustain while on the job. Unfortunately, that means you may be personally responsible for any medical payments stemming from those injuries. Not only that, but the courts may also award additional monetary payments to your injured employees. The best way to protect yourself from civil lawsuits is to add workers' compensation insurance to your business policies before a work-related injury occurs.
Avoid Costly Penalties
If you haven't purchased workers' compensation insurance for your small business yet, you might be at risk for legal problems. Because workers' compensation insurance is required by law, you could face legal action should any of your employees suffer work-related injuries. Some of those legal actions include citations, fines, and possibly even jail time. That's why it's crucial to talk to your agent about purchasing workers' compensation insurance as soon as possible.
Don't put yourself at risk. If you don't have workers' compensation insurance for your small business, add the coverage right away. Contact companies like Contractors Insurance to learn more.