Workers’ compensation insurance provides benefits to employees who are injured on the job and is one of the most important types of policies a company needs to have. But unfortunately, they sometimes forgo this kind of insurance because they do not fully understand how it works or due to incorrect information. Believing the myths can cost a business a lot in the long run by leaving them vulnerable to financial risks that could have serious consequences.
Myth #1: Workers’ Compensation Insurance is Only Necessary for a Large, Full-Time Workforce
Some business owners feel that if they only employ a small number of workers, or if they are mainly part-time, workers’ compensation is not needed. But the fact is that even one person getting seriously hurt can lead to enough medical bills to cause a lasting impact on a company. In fact, most employers, no matter the size, are required by law to carry workers’ compensation coverage.
Myth #2: A Close-Knit Group of Employees Would Never Think to Sue
Long-time employees may seem like family, but if one of them should suffer an injury, it is quite possible that they would want their medical bills covered, along with compensation for pain and suffering. A company has a responsibility to look out for its own financial well-being, as well as that of its employees that could experience financial hardship in the event of a work-related injury.
Myth #3: Workers’ Compensation Coverage Isn’t Necessary in a Low-Risk Work Environment
A company can take all of the necessary steps to provide the safest work area possible, but accidents can still happen. Even in an office comprised mainly of desks and cubicles, an employee could trip over faulty carpet or slip on ice in the parking lot and sustain an injury.
Myth #4: 1099 Employees Don’t Need Coverage
Believing that independent contractors are excluded from workers’ compensation requirements is a mistake that could cost a small business a lot of money, as an injury to a 1099 employee could still have consequences for the business. It is always better to be safe and make sure to have the proper coverage in place.
Myth #5: Workers’ Compensation Insurance is Too Expensive
Companies that think it is worth the risk to go without the proper coverage might learn their lesson the hard way. Proper insurance coverage is a cost of doing business and certain policies, like workers’ compensation, should not be compromised.
The right agent can help minimize the costs involved in establishing a workers’ compensation policy by structuring the policy based on the company’s specific environment and needs. Webb Financial Group advisors have extensive knowledge of workers’ compensation policies and work with a variety of underwriters to ensure that you are getting the best coverage at the best rates. Call Chris at 847-235-6001 or email ChrisWebb@webbfg.com for more information.