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Does My Business Need Workers’ Compensation Insurance?

The short answer is that purchasing workers’ compensation insurance is a really good idea.

If your business has non-family member employees (even one), most states will require that you carry workers’ compensation coverage.  Even if workers’ comp isn’t a requirement in your state, it’s still a good business decision for you and your employees.  Workers’ compensation coverage is designed to protect you and your employees in the event of a workplace injury.  Benefits include:
  • Recovery of lost wages by employees
  • Coverage of medical expenses for the injured employee
  • Coverage of legal fees if an employee sues
  • Death benefits in a worst-case scenario

Even if you offer health insurance to your employees, this coverage doesn’t cover a work-related injury or illness.  You’ll need worker’s compensation insurance to protect you and your employees.

What if I don’t buy workers’ compensation insurance?
If you’re state requires workers’ compensation and you don’t carry it, you open yourself up to penalties, fines and stop-work orders.  In addition, it doesn’t matter if your state requires you to carry workers’ compensation coverage or not, if you don’t have coverage and an employee is injured, you will be required to pay medical expenses, lost wages and other benefits.  These costs can quickly spiral out of control.

What else do I need to know?
There are many state by state differences in worker’s compensation requirements.  It’s important to find a partner that knows the laws in your state.  It’s also important that you find a partner that is focused on your industry, and provides services like risk analysis and loss control, safety training, claims management, and regulatory compliance assistance.  When your business is covered correctly, you and your employees will have the peace of mind you deserve.
Agri-Services Agency
Phone: 877-466-9089
Click here for more information.