Small businesses are a huge part of our US economy. But so many small business owners, when they are starting their businesses, wonder if they need worker’s compensation insurance. They do. The actual laws vary from state to state, but the simple answer to this question is ‘yes’.
Worker’s compensation insurance protects the employee and the employers against a loss that occurs with an employee at work. Workers' compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment in exchange for employees giving up the right to sue their employer for negligence. This agreement to avoid litigation is called the "compensation bargain."
Consider the unfortunate situation where an employee of yours gets injured on the job and cannot return to work for an extended period of time. These types of scenarios can seriously damage the financial stability of your company. If you end up settling out of court with your employee or worse, getting sued by your employee, this could cost you tens of thousands of dollars, even without hospital bills.
Worker’s comp takes care of wages and medical bills for your employee, and potential lost wages if your employee cannot ever return to work. This protects you and your business from loss and the time and energy of a lawsuit. Workers comp pays this in exchange for the employee not filing a lawsuit.
For more information on the right worker’s compensation insurance policy for your business, contact TriState Business Insurance.