The Reality of Workers Compensation

The Reality of Workers Compensation

The Reality of Workers Compensation

09:56 25 February in Business, Insurance

Every business strives to keep its employees safe and healthy on the job. However, no matter how hard you try, accidents can and do happen every day. A back muscle is pulled, a neck is strained, there is a slip and fall, or years of strenuous labor leaves an employee unable to perform their regular duties.

In each one of these scenarios, having a workers compensation plan can help your business to cover the costs associated with medical fees and wage replacement for injured employees.

On the other hand, taking a risk and going without workers comp coverage can leave you with bills and expenses your business is not prepared to pay.

What follows are three common workers comp myths that can cost you a lot of money.

  1. Small businesses don’t need workers compensation coverage

Truth: The only type of small business that can go without workers compensation coverage is a sole proprietorship.

If you have any employees, even a small number of them, your best option is getting covered by a solid workers compensation plan.

The rule of thumb in most US states is that if you have five or more employees, you should have workers comp benefits in place.

Having proper insurance coverage prevents your business from going bankrupt if there is ever an unforeseen and catastrophic work-related event that leads to a significant claim brought forward by an injured employee.

  1. Workers comp provisions only need to be made for full-time employees

Truth: Workers comp is essential for full-time and part-time employees.

If you think that having part-time employees means that you are exempt from having workmans compensation coverage, you could be making a serious mistake.

Whether an employee works full-time, part-time or even if they are a member of your family, as long as the individual is on the company payroll they should be covered by a workers comp insurance policy.

This rule also applies to employees who work out-of-state. When it comes to most workers compensation laws, the physical location of your full or part-time employee does not matter. As long as they are an employee of the company, the business must provide them with adequate workers comp coverage.

  1. Paying out of pocket is cheaper than having workers compensation insurance

Truth: Workers comp insurance can cover costs that your business can’t.

Many business owners believe that having workers compensation insurance is expensive and unnecessary. However many of these individuals find out too late that the premiums attached to these policies are often very minimal compared to an eventual payout to an injured employee.

Depending on the nature of the injuries sustained, medical bills and legal fees can add up astronomically. This type of scenario often results in business closure due to irreversible financial damage.


Do you want to protect your business from the legal claims and hefty medical bills caused by employee work-related injuries? Call Ihry Insurance today to speak to one of our helpful agents and get a free workers compensation insurance quote.

insurance quote