No matter the business size, any company that hires employees will need workers’ compensation coverage. Workers’ compensation insurance can help protect your new and growing organization from the need to come up with the funds to cover one single workers’ compensation claim. Without this protection, the company might still be held liable for damages, legal fees, and other out-of-pocket expenses that might end up causing cash flow issues. But some small business owners might be reluctant to pay out for a business insurance policy they feel they may never need. The truth is that when it comes to workers’ compensation insurance, it’s always better to have that peace of mind in place. Some of the top reasons why your company may need this coverage include:
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Legal Compliance
One of the most important reasons to get workers’ compensation coverage is that your state likely requires it. Most states in the US now legally require most businesses to have a workers’ compensation insurance policy to protect their employees. However, this can vary between states; some require every business to carry this insurance, while in others, it’s only legally required once you have hired a certain number of employees. For example, in Oregon, workers’ compensation is required for most businesses that have hired any employees. Businesses can find more information on Oregon workers’ compensation insurance so that you can determine if it’s needed for your business.
Easier Hiring
Small businesses with workers’ compensation tend to find hiring easier. Even if workers’ compensation is not a legal requirement in your state, it is worth bearing in mind that employees are more likely to be willing to work at a small business with workers’ compensation over one that does not. Getting workers’ compensation can be a valuable recruitment tool to advertise in job listings, showing job seekers that you are an employer that cares about employees and has coverage in place to protect them.
Get More Business Funding
With workers’ compensation insurance for your small business, you may find it easier to get business funding like loans, credit cards, and investors. In addition, traditional business lenders and investors are more likely to approve an application for a small business that has workers’ compensation insurance since this policy will help to demonstrate to lenders that you are a responsible business owner with plans for the future in place.
Protect Your Business Financial Health
Getting a workers’ compensation policy will protect your small business’s financial health. Statistics show that one single medical procedure from a workers’ compensation claim could be extremely costly for a small business. Getting workers’ compensation insurance could end up saving your business thousands or even millions of dollars. In addition, without coverage, an injured employee could sue your business for an accident or injury, which will cost much more than the average workers’ compensation policy.
Whether you are in the process of hiring your first employee or are starting a business and planning to hire in the future, getting workers’ compensation insurance is a crucial step.
