To effectively run a business, no matter the size, you need workers’ compensation coverage. In fact, if you do not have it, there may be a penalty for not having workers’ compensation insurance. Here is what you need to know.
The Importance of Workers’ Compensation Coverage
Most states require that businesses have some type of workers’ compensation coverage. There are exceptions, dependent on how many employees a business has and what state you are in. Workers’ compensation insurance is a protection for workers who suffer injuries on the job and likewise protection to businesses. If you have workers’ compensation coverage, then an employee cannot sue you for injuries or illnesses that he or she received while on the job.
The Fines for Not Carrying Workers’ Compensation
The experts at Caitlin Morgan Insurance Services warm that failure to carry workers’ compensation coverage can result in fines between $1,000 and $10,000. This is significant for any employer to have to pay. The cost of workers’ compensation benefits represents about only 2% of a business’s operating costs.
To avoid fines and lawsuits for illness or injury, it is always better to have workers’ compensation coverage. It will cost your company less in the long run to have coverage that protects your employees and protects your company.