The law requires larger companies to carry workers compensation insurance. However, if you own a small business with a limited number of employees, this legal requirement may not apply to you. Despite this fact, you may still wish to consider purchasing a workers comp insurance policy. This is because while you may not be required by law to carry this insurance, you certainly can still benefit from having it. Continue reading to learn more about just a few of the reasons that having workers comp insurance can benefit you and your small business.
#1: Workers Comp Insurance Will Help To Protect Your Financial Stability
The absence of workers compensation insurance will not eliminate your legal liability if an employee is injured on the job. The difference is that if an employee is injured without the proper insurance coverage, you may be held personally liable for any resulting medical costs and lost wages. This can be devastating to both your business and potentially your personal finances. Consequently, it is always in your best financial interest to purchase workers comp insurance even if you only have a couple of employees.
#2: Offering Workers Compensation Coverage May Help You To Attract New Employees
One of the biggest advantages that larger companies have over small businesses is that they are often able to attract more qualified employees thanks to the benefits package that they are able to offer. If you have been struggling to attract quality employees for your small business, offering some benefits can help. Workers compensation coverage is a simple and rather affordable option that you can offer as part of your small business benefits plan.
#3: Your Personal Livelihood Could Depend On It
When most people think of workers compensation insurance, they tend to think about financially protecting their workers and their business. While it is true that a workers comp policy does offer these important protections, this policy can also protect you on a personal level. This is because just as your employees can file a claim against the policy if they are injured on the job, so can you. This is an especially beneficial feature for individuals who are the only employee their business has. After all, if a sole proprietor is injured on the job, there really is no one else to take over their responsibilities. This means that the business will have no choice but to close at least temporarily. Having workers compensation insurance can help to ensure you have the income you need to make it through this difficult time.
Reach out to a company like Tucker Insurance Agency to learn more.