Why Do I Need Workers Compensation Insurance?

One of the risks of owning a business with employees is the potential of injury to those employees. What happens then? Who pays the doctor bills, the hospital bills, the prescription costs, the physical therapist? A serious injury can cost tens of thousands of dollars and that doesn't even count the cost of lost wages. (Are you getting the picture and are dollar signs dancing around your head?)

Well, if the injury happened while performing your employees were performing their job duties, you, the business owner, are going to be held responsible — and you'll have to pay the employees medical expenses, lost wages, etc.

But don't fret. Workers compensation insurance can help cover these costs.

With workers compensation coverage, a business doesn't have to fully pay out-of-pocket to cover these costs. Rather, an injured employee can file a claim and the business' workers compensation insurance policy helps cover his or her expenses — often including lost wages during recovery.

Workers comp also acts as somewhat of a compromise between employers and employees. In exchange for receiving these benefits, an employee forgoes the right to sue his or her employer after sustaining an injury (with rare exceptions). For this reason, workers compensation insurance is beneficial for all parties involved.

Having a workers compensation insurance policy is a good investment and a financial safety net; however, it does not eliminate the need to consider safety in the workplace. It's vital to provide your employees with a safe work environment, along with any equipment they may need to perform their jobs safely.

In fact, the more safety measures you have in place, the more likely you are to save money on your workers compensation insurance premium. This is the case because a safer workplace is less of a risk to an insurer.

But perhaps the most important reason to purchase workers compensation insurance is because many states require it by law (other states may require non-elective documentation to be filed annually). Your Southwest Commercial Insurance agent can let you know if coverage is required in the state(s) you operate in, and any other questions you may have.

Let us help you protect your business, your income and your livelihood by asking for a free quote. Workers compensation insurance coverage can be more affordable than you think; it can be also be comforting to know that if something were to go wrong, you're covered.

Call us at (512) 771-6091 today to learn more about the workers compensation insurance policies we offer.

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