Why Do You Need Workers Compensation Insurance?
Venturing into a new business endeavor is always an exciting and nerve-wracking time for every business owner. Although the rewards of having a business can be substantial and life-changing, there are myriads of unforeseeable situations that always catch business owners by surprise. Are you prepared for business-related injuries or lawsuits? Do you know what steps are required in such circumstances?
Making sure to have your insurance coverage to maintain the preservation of your business is essential for your business to succeed. The moment you start a business and start hiring employees, it is required by the state of California to have workers' compensation insurance.
Why do you need workers comp?
Well, workers' compensation insurance is mandatory. It might sound like a hassle and an extra cost to your business, but when you take a step back and analyze the benefits of having this layer of protection for your business, it is well worth it and needed. Workers' compensation covers a variety of liabilities that serve to protect your assets.
It is a win-win; workers' compensation insurance protects you, your business, and your employees. Workers comp protects your business from financial losses and any liability from lawsuits. If an employee suffers an injury or illness on the job, they can sue you and your company for damages, regardless of fault. Workers comp also covers wage compensation while the employee is on leave.
When is the best time to buy workers' compensation insurance?
The moment you hire someone to work for your business is the best time to buy workers' compensation insurance. We cannot emphasize that workers' insurance is mandatory in California. Without workers' compensation insurance, you will have to pay out of pocket for any damages. We all know how expensive medical expenses are, employee-paid leave, or legal fees and lawsuits. There are horror stories of entrepreneurs losing their business and life savings to fund all the expenses that come with claims, and they do not have the appropriate insurance to protect them. Failure to comply with reparations will lead to criminal or civil penalties. According to the National Safety Council, the average cost of a workers' compensation claim is about $42,000. When you start or run a small business, you cannot afford a setback of that magnitude. Do you have $42,000 to spare per claim? Buying workers' compensation insurance is a small price to pay if it means you will not be personally liable for reparations.
Do not risk being at the receiving end of a claim you cannot afford. Workers’ compensation insurance is here to give you and your employees peace of mind. Take the time to ask our professionals to get a free quote on our types of business insurance.
Let Griffith Insurance & Financial Services, Inc. help you choose a policy that will fit your individual needs. Protecting your assets, whether personal, business or both, is our goal.