If you’re new to the world of small business insurance, you’ve probably heard the term “workers’ compensation” thrown around in conversation a few times. If you’re not sure exactly what it is or why it your business absolutely needs it, here’s what you need to know.
What is it?
Workers’ compensation is a type of small business insurance that takes care of any medical or rehabilitation expenses your employees incur after a workplace injury. In exchange for these benefits, your employees lose the right to sue your business for negligence.
Why does your business need it?
As a small business owner, you probably want to keep your expenses low and may be tempted to forgo certain types of insurance. However, workers’ compensation is a type of small business insurance you shouldn’t go without. Not only is it a legal requirement in most states, but not having a policy also seriously jeopardizes your business’ financial stability. For instance, if one of your employees gets hurt and becomes temporarily disabled, you may have to front thousands of dollars in medical bills, rehabilitation expenses, and lost wages.
When should you buy a policy?
Typically, you are required to buy a workers’ compensation policy when you have one or more employees who aren’t the business owner.
How much does it cost?
How much you pay for this type of small business insurance is calculated using factors such as your business’ risk level and a percentage of each of your employee’s total payroll costs.
At Wise Insurance Agency, LLC, we can help you find a workers’ compensation policy that not only adequately protects your business, but also works for your budget.