Failing to acquire adequate workers comp insurance coverage can create big problems for employers. That's why employers need to be well informed about the importance of workers comp insurance.
The following are seven things employers should never assume when it comes to workers comp insurance.
Workers compensation insurance isn't necessary in some industries.
You might think that your industry doesn't involve enough on-the-job risks to warrant workers compensation insurance.
However, workplace injuries can happen in any industry. It's also important to note that you'll most likely be required by state law to have workers compensation insurance even if your company doesn't operate in an industry where workplace injuries are particularly common.
Employers can just pay out of pocket for workers comp claims.
Employers should never underestimate how expensive workers comp claims can be. The medical bill expenses that arise from workers comp claims can be astronomical, so it's always important to have coverage for your company.
You should invest in workers comp insurance coverage if you have any employees, even if you're not technically required to carry coverage by law.
Employers can avoid workers comp issues by making sure they're not negligent.
It's a mistake to believe that you'll only owe money on a workers comp claim if you were negligent in some way. A company has to pay for a workers comp claim for any workplace injury. This is true regardless of whether there was negligence involved.
Employees won't sue an employer who they like.
If you have a smaller company, you might feel that you have a really good relationship with all your employees. This could lead you to believe that your employees would never sue you.
However, it's important to realize that injured employees may be forced to sue you due to financial problems. This means that your relationships with your employees shouldn't be a factor when making decisions on workers comp coverage.
Workers comp coverage is not necessary for part-time employees.
According to laws in most states, employers need workers comp insurance coverage for part-time employees as well as for full-time employees. How many hours per week an employee works doesn't typically impact the need to include that employee for coverage in a workers comp policy.
It's a big problem for an employer to have a workers comp claim filed by an employee.
If you have adequate workers comp coverage, then you really shouldn't worry about having a claim filed against you. Your workers comp policy should cover the expenses for the benefit of both your company and your employee.
Workers comp coverage is not affordable for smaller companies.
Owners of smaller companies who may be working with lower revenue levels shouldn't assume that they can't afford workers comp insurance coverage. The costs of coverage should be adjusted for the number of employees you have, so you should be able to afford coverage regardless of company size.