Important Reasons Why All Employers Should Have Workers' Compensation Insurance

About Me
Reducing Insurance Premiums

When was the last time you evaluated your budget? A few months ago, I took a good, hard look at my finances, and I realized that I was spending a boatload on insurance premiums. I knew that I needed to cut down my spending, so I started talking with my insurance agent. The agent was incredibly kind and caring, and he walked me through a variety of hypothetical scenarios to help me to make things right. I was really impressed with how awesome the experience was, and I was able to save a lot of money on my premiums. This blog is all about reducing insurance costs.


Important Reasons Why All Employers Should Have Workers' Compensation Insurance

10 June 2016
 Categories: Insurance, Blog

Do you own a company of any kind? Are you concerned about what might happen if one of your workers does get injured on the job? Although many companies in the United States are required to hold workers' compensation insurance, this isn't always universally true. If your state doesn't require your particular type of company or industry to carry workers' compensation insurance, here are some reasons why you should seriously consider doing so anyway:

Save money: Lawsuits are expensive. If one of your workers is injured while on company property, they may be able to sue you for lost wages and repayment of their medical bills. A very large settlement has the potential to bankrupt your company and put you out of business. Carrying a good workers' compensation insurance policy will alleviate this issue. It works similarly to auto insurance in that the insurance company will be responsible for the repayment of whatever accidents or injuries occur on your property. Although your insurance premiums may increase after your employee is repaid, you'll still have your company and will be able to continue doing business.

Attract & keep employees: Many people might not want to continue to work for you if they found out that you don't actually carry workers' compensation insurance. While you might still get a few employees, the best ones would be more likely to avoid your place of business entirely. Once someone found out, they might post this information on social media, meaning that you'll have an even smaller pool of candidates to choose from. By carrying workers compensation insurance, even when it's not strictly needed, your employees will appreciate that you're protecting them as well as yourself.

Keep customers: Customers these days are often concerned with the rights and working conditions of the employees who make the things they buy or who provide services that they need. Although simply not having workers' compensation insurance is hardly the same as employing workers in a sweatshop, your customers may still be concerned. You may find your previously loyal customers boycotting your goods or services if they find out about your lack of insurance. Even if you then purchase insurance and provide proof, it could take some time to be able to build up goodwill within your former customer base. This lost revenue could wind up setting your company back for months or even years, forcing you to reconsider your plans for expansion.

For workers' compensation insurance, contact a company such as Kim Farner Insurance.