While you've taken these necessary steps to create a healthy and safe workplace, it's important to realize that accidents do happen, and injuries do occur on the job. In order to protect your company from this liability and pay benefits for workers that have been injured on the job, you need to have workers compensation insurance.
According to the 2016 Liberty Mutual Workplace Safety Index, the total cost of nonfatal injuries that happened in the workplace was approximately $62 billion in workers compensation costs in our country. To put this into better perspective, U. S. businesses are spending more than a billion dollars each week on these injuries.
With that being said, if your employee is to become injured on the job, it has the potential to put you out of business if you're not protected with workers compensation insurance.
It's important to remember that an employee's injury is much more than a financial burden on your business. Other repercussions of such an injury could include lower morale in the workplace and cause your operation to run behind schedule. Fortunately, workers compensation insurance can help you to overcome any of these side effects if tragedy is to occur.
Here are some additional ways that workers compensation insurance can benefit your organization:
Protects employees by paying for ailments that occur while on the job.
Imagine trying to attract top talent to your organization by assuming that they would accept any physical risks that could potentially happen on the job. With that approach, you probably would not be viewed as an attractive employer.
However, having a workers compensation insurance policy in place can help to alleviate an employee's concerns about the financial burden that could come along with an injury. Depending on the workers compensation plan that your organization offers, coverage could include medical expenses, wage replacement, vocational rehabilitation, and death benefits.
Creates trust between the employer and employee.
You will build trust and loyalty with your employees when they know that they can count on your organization in the event that tragedy strikes in the workplace. If someone is to become injured while on the job, your workers compensation plan can allow for the injured worker to be well cared for, ultimately helping to build workplace morale.
Helps to prevent bankruptcy when injuries happen.
Most small businesses would not be able to recover from the high cost of an occupational injury and the decreased productivity level in the workplace. However, having a workers compensation policy in place can allow for these expenses to be covered without putting your company out of business.
Ensures that your business complies with the state laws.
Unless you live in Texas, it's required by law that your business have workers compensation insurance in place.
Please contact us at Summerlin-Roberts to learn more about workers compensation insurance and the type of coverage that you will need for your business.