ATHENS, Pa. — The short answer is that purchasing workers’ compensation insurance is a really good idea.
If your business has non-family member employees (even 1), most states will require that you carry workers’ compensation coverage. Even if workers’ comp isn’t a requirement in your sate, 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:
- Employees can recover most of their lost wages
- Employees medical expenses will be covered
- In the event of an employee lawsuit, workers’ comp will help cover legal fees
- In a worst-case scenario, workers’ comp will provide death benefits for the employees’ family
Another thing to remember is, 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 penalties, fines and stop-work orders. In addition, if your state either does or does not require that you have worker’s compensation coverage and you don’t have it, in the event of an accident, 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. When your business is covered correctly, you and your employees will have the peace of mind you deserve.
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