When you own a company, you want to do everything you can to protect your business. One way to do this is to purchase workers’ compensation insurance. Each state has different requirements, but the benefit is always the same no matter where you work. Here are three reasons why you should always have this vital policy.
Workers’ Compensation Keeps Your Company Legal
While the regulations vary for each state, there is a legal requirement to carry worker’s compensation insurance when you operate a business. Each state determines the policy’s limitations and how many employees you can hire before requiring this insurance. For example, Iowa workers compensation law requires businesses with one employee to carry coverage but excludes people working for a relative. In comparison, Alabama doesn’t require coverage unless you employ at least five people. Being familiar with your state requirements keeps you operating legally.
The Insurance Policy Protects Your Business
If an employee is injured, they may require immediate medical treatment, might miss work and can even experience long-term disability. Not having an insurance plan to care for that employee leaves your company at risk for a lawsuit. The employee can sue for damages to cover expenses and lost wages, which could financially destroy your business. By providing this insurance coverage to your employees, they can get the help they need without affecting your company’s finances.
Employees Receive Treatment for Injures
In addition to protecting your business, workers’ compensation insurance also keeps your employees from experience financial crisis in the event of an injury. These policies pay for medical expenses, rehabilitation, pharmaceuticals and pays them a percentage of their income if they miss work. By providing good medical care, your employee is likely to recover faster and be able to return to work sooner than if there was no insurance.