Four Reasons Your Business Might Need Workers’ Compensation
Alan Levenson October 01, 2019
Workers’ compensation is an amazing financial benefit that assists employees throughout the country who experience work-related injuries. It provides them with a portion of their paychecks while they recover from such injuries. You may want to give the benefit to your workers if you run a business. In some cases, you may have to provide it to them to uphold the laws. These are four situations in which you should purchase a policy for your business.
You Own a Sole Proprietorship, LLC, or Corporation
If your business is in the state of New Jersey, you can almost guarantee that you’re required to purchase a workers’ compensation policy. All sole proprietorships, LLCs, and corporations with at least one employee must obtain the workers’ compensation coverage. The penalties for not doing so can be crushing. The state of New Jersey can charge you with a fourth-degree disorderly person’s offense that can cost you an initial $5,000 fine. You may also have to pay an additional $5,000 every 10 days if you don’t purchase a policy after that. That’s far more than you’d ever have to pay for a monthly premium.
You Would Like to Deter Personal Injury Suits
All businesses are subject to a certain level of vulnerability when it comes to lawsuits. Personal injury and liability lawsuits are among the most common sources of financial loss for businesses of all types. Therefore, it would be wise for you to obtain a workers’ compensation policy if the state doesn’t require you to do so. The benefit will provide injured employees with wage replacement and medical bill coverage while they’re recovering. They’re less likely to go for a fault-based or personal injury lawsuit if they have a workers’ compensation policy to help them through their difficult time immediately.
You Want to Avoid Out-Of-Pocket Medical Expenses
As stated before, the workers’ compensation policy pays for diagnostic tests, medical expenses, and medication for people who have experienced injuries on the job. If you do not invest in a workers’ compensation policy, you subject your business to multiple expenses. Your employee might have to see a doctor more than once for the injury that he or she experienced. You will have to pay each bill out of pocket if you do not have an insurance policy. For that reason, it’s worth it for you to pay the premium.
You Want to Keep Utilizing Your Employee
Light duty is another reason that you might want to consider purchasing a workers’ compensation policy. You may not have to lose your healing employee entirely if you have a workers’ comp policy. That person will have to see a company-assigned specialist for an evaluation to see if light duty work is possible. The insurance company may require that person to come into work and perform light duties for a specified time frame. The employee would be obligated to do some form of work for you in that situation or risk losing the benefits. On the other hand, you may lose your employee altogether if he or she has to use FMLA or another benefit during the recovery process.
Now you know of at least four good reasons that you should invest in workers’ compensation for your employees. Now all you need to do is contact us about a policy. We can help you start protecting your business and employees today. We have been in business for almost two decades, and we’ve helped hundreds of companies connect with outstanding insurance providers. You can have 100 percent confidence in our ability to find you the best workers’ compensation provider so that you can invest in your employees’ wellness.