Rethinking Workers Compensation: Why It’s a Win-Win Insurance

Somewhere along the line, workers compensation got a bad rap among business owners. Maybe it started with an undercover expose about an employee illegally bilking payments by faking a workplace injury. It could be that payroll deductions aren’t taken out of employees’ checks for the insurance. Or perhaps employers got tired of paying for an insurance policy they rarely used. Either way, it’s too bad, because workers compensation is actually a win-win insurance.

Here’s a look at five reasons why it pays to have a smart policy–for both employers and their employees.

1. It’s the Law
First and foremost among the reasons this insurance actually works for everyone: It’s the law. Every state has its own workers compensation laws. But penalties are one area where they are similar. If you violate the law as a business owner, you could be in for a steep fine, a forced work shutdown, and even criminal charges.

For example, if you’re caught violating Florida’s laws, the state will levy a fine that is equal to two times the amount you would have paid in manual premium within the preceding two year period. They can also put a stop-work order in place leaving you unable to make any money or pay your employees.

And if they think you’ve committed fraud, they could slap criminal charges on you that could put you behind bars and cost tens of thousands of dollars in fines.

None of that is good for you or your employees.

2. It Protects You
Accidents happen all the time on work sites. According to the National Safety Council, a worker is injured on the job every seven seconds. That adds up to 12,600 a day, 88,500 a week and more than 4.6 million workers injured every year.

It’s almost enough to make you think a workplace injury is inevitable.

It’s not, but if an employee is injured, becomes ill, or dies on the job, it could open the door to a lawsuit–if you don’t have workers compensation insurance.

Prolonged, complicated lawsuits can and often do devastate companies. Investing in workers compensation insurance is one way to protect yourself against lawsuits.

3. It Protects Your Employees
Workers are the lifeblood of every business. They keep the products and services rolling out the door. They build, fabricate, sell, market, manufacture, finish, fix, and do everything in between.

And when they get injured or ill on the job, it can be costly.

The insurance covers the often expensive out-of-pocket health care expenses. It pays for long-term care that can include therapy, rehabilitation, and prescription drugs. It puts food on their tables while they are unable to work. If they are able, it allows them to get back to work more quickly, which benefits your company as well.

4. It Doesn’t Cover Everything
One of the myths about workers compensation insurance is that it will wind up covering everything from a paper cut to compound fracture.

As you may have read, that’s not true.

It’s a benefit that’s designed to protect against the most serious of illnesses and injuries. And to further protect you, the benefits are capped by state law.

5. It’s Customizable
When it comes to workers compensation, you don’t want to take a one-size-fits-all approach. You want coverage that meets your needs and state law.

Anything else could be costly.

If you’re ready to find a policy that’s perfect for your business and your employees, connect with Flagler Financial today.