As a small business owner, you may be considering foregoing workers’ comp insurance for your employees. You have looked into the insurance and the premiums are simply higher than you can afford right now. Not to mention the fact that those premiums will rise even higher as you add more employees to your company. Is skipping out on workers’ comp insurance a smart move? The short answer is ‘no.’ The long answer is a bit more complex.
1. Accountability
When you decide to hire even a single employee, you do so with a promise to provide financial assistance should they be hurt on the job. It’s the law. If you choose to not purchase workers’ comp insurance, you are setting yourself up for a lawsuit that could financially ruin your business if one of your workers gets hurt.
2. Out-of-pocket Costs
You may think that you would be better off just paying for your employee’s medical expenses out of your own pocket should an injury occur. After all, your employee may never be injured, so why throw money away on premiums? It’s a reasonable thought, but consider that paying a premium each month is almost always cheaper than paying tens of thousands in medical bills for your employee.
3. Employee Morale
Studies have shown that employees who feel like they are valued will perform better on the job. These employees care more about their employer, and they are willing to do more at work. Ask yourself what it will say to your employees if you aren’t willing to provide the protection of workers’ comp insurance.
4. Peace of Mind
At the end of the day, workers’ comp insurance provides peace of mind. You can go to sleep at night knowing that you are following the law. You will also know that should an accident happen at work, your employees are covered and, in turn, so are you. There is really no good reason not to have workers’ comp insurance.
When you determine that you can no longer run your company on your own and bring in an employee, you are bound by law to protect that person. If you fail to secure workers’ compensation insurance and your employee is hurt, you can expect to be paying not only medical bills, but court fees and other compensation as well. Do yourself a favor and pay the premiums.
If you have been hurt on the job and need help with a workers’ compensation claim, please call us. We understand workers’ comp in North Carolina and are here to assist you. Call now for a free consultation.