If you own or are planning to open your own business, you’ve probably researched different types of insurance. One of the most important types of insurance you should consider is workers’ compensation insurance (also called workers’ comp or workman’s compensation). You might ask, “Is it really so important? Do I actually need workers’ comp insurance?”
Do you only have a few employees? Do they work in low-risk jobs? A lot of business owners believe they don’t need to carry workers’ compensation insurance if the answer is yes to either of these questions. But, that’s typically not the case.
If you have employees, then yes—you should have workers’ compensation coverage. In fact, depending on where your business is located, it might even be mandated by state law. If you don’t have the required workers’ comp coverage for your employees, you can potentially face fines, penalties, and even imprisonment in your state.
After all, it’s your job and responsibility to keep your employees safe at work. You can (and should!) adopt any number of safety measures to mitigate the risks your workers may face on the job. Still, you can’t remove risk altogether.
Workers’ compensation insurance helps protect your business and helps cover your employees in case an employee gets injured or becomes ill on the job. Workers’ compensation coverage can provide considerable financial relief for the affected worker at such times.
If you have employees, depending on how many employees you have and which state you operate in, your business is probably mandated by state law to carry workers’ compensation insurance. However, even if your state doesn’t mandate coverage, it’s usually in your best interest to invest in a workers’ compensation policy because it’s likely to save you money in the long run.
If understanding workers’ compensation insurance seems overwhelming, you’re not alone. E-COMP can help make workers’ compensation easy and awesome. We’ve taken the guesswork out of the process and we’re passionate about providing workers’ compensation insurance for all size businesses across the country.
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