How Workers’ Compensation Insurance Protects Small Businesses

According to a recent poll, 26% of small American businesses don’t have workers’ compensation insurance. That’s 1 in 4 businesses where, if a workplace mishap were to happen, they would be forced to dip into their savings to compensate the affected employees. Even worse, they would be left vulnerable to the financial impacts of possible litigation.

As a small business owner, you’re probably worried that your business might take a hit from these unexpected costs and work disruptions. With the right workers’ compensation insurance policy, however, you can help safeguard your organization against these threats in several ways:

1. Legal Compliance. Most states have laws in place that mandate small businesses to have workers’ compensation insurance. In North Carolina, for instance, businesses with three employees or more must be insured under this policy. Failing to comply with these regulations can result in fines and penalties, which will further strain the resources of a small business.
2. Comfortably Support Affected Employees. Workers’ comp covers your injured employees’ medical treatment, in addition to partially replacing lost wages for the duration they’re unable to work. It even provides financial support to their family in the tragic event of a workplace fatality. This allows you to properly care for your valued staff in difficult times.
3. Avoid Lawsuits. If your company has workers’ compensation insurance, employees cannot sue you for an on-the-job injury in most cases because they can seek compensation through the insurance coverage instead. However, if your business doesn’t have workers’ compensation coverage, you open yourself to potential litigation. Protection in the form of workers’ comp could be vital for a small business that probably doesn’t have funds set aside for legal fees.

At The Catawba River Insurance Group, we are committed to safeguarding the futures of small businesses and their employees with our affordable workers’ compensation insurance solutions. Let’s connect today to make sure you have the coverage you need.