These days, there are so many different types of insurance that a business might find helpful. One of those is known as workers compensation insurance. Some small businesses get this, while others don’t. This begs the question; does your small business need it? To help figure this out here’s some basic information and points about this type of insurance.
Is this the type of business insurance your company needs?
What Is Workers Compensation Insurance?
In simple terms, this insurance will cover your business if your employees get injured at work. An accident happens, and they’re unable to work – or end up with high medical bills – and they put the blame on you. After all, it’s written in the law that you must provide a safe place for employees to work. So, if an accident happens, the fault is all yours. They can take legal action and get compensation for their bills or any money they will now not get because they can’t work. When you have this insurance, your business is covered, and the compensation comes out of the insurance policy rather than your bank.
Do you employees work in a high-risk environment?
Reasons You Might Need This Insurance
As mentioned, there are loads of different types of insurance you can purchase for your business. Realistically, a small business with a small budget can’t buy it all. So, why should you get workers compensation insurance? To begin, you need it because it protects your business in the event that accidents happen to your employees. There are many businesses where this is more likely to happen than others. For example; a construction business or a company that works with heavy machinery and does a lot of physical work. Even a business with a warehouse that employs people to move boxes has a high chance of accidents happening.
Secondly, the price for this insurance can vary depending on your business and how many employees you have. If you call Garrity Insurance, you can get a quote and see how this fits in with your budget. You may find that it’s a cheap insurance option for a small business with very few employees.
You don’t need this insurance if your employees work from home!
Reasons You Might Not Need This Insurance
The main reason you probably won’t need this insurance is if you don’t employ anyone. Many small businesses don’t have employees or do have them, but they work remotely. If you haven’t got an actual premise for people to work on, then this is probably not necessary.
After all, if your employees work from home, then you’re not liable for any accidents that happen to them while in their home office!
So, does your business really need workers compensation insurance? If you run a business with lots of employees in a high-risk environment, then yes, you do. Likewise, if you all work in an office, or a different premises, then it will help protect your company in case a freak accident occurs. However, if you’re a lone wolf with no employees, or all your employees work from home, then it’s not needed. Hopefully, this clears things up and helps your business make the right decision!