If you live in a state that doesn't require you to carry workers comp insurance, you may want to keep reading.
This article will cover some of the most common myths about workers comp and explain why not having coverage may be the biggest business mistake you could make.
1. One of the most common myths is that a business with few employees and/or mostly part time employees doesn't need workers comp insurance.
The truth is that workers comp insurance is something any size business should consider. Even in a small business, there can be injuries. Having to cover that cost out of pocket could be disastrous for a small business. In addition, if the employee sues and the business is found negligent, the owner is on the hook for the entire settlement!
2. Another common myth is that workers comp insurance is simply too expensive. Many smaller businesses think it's a good idea to simply pay out of pocket and that injuries are rare and not very severe.
While the chance of injuries may seem small and the cost of workers comp unnecessary, the truth is that one major injury could result in very high out of pocket expenses. The cost of the premiums will seem small compared to the cost if an employee sues and the business is found negligent.
3. Many businesses believe that they provide a safe work environment and that accidents just don't happen.
The truth is that accidents can happen anytime, anywhere. That is why they are called "accidents".
Even in the safest work environment someone can trip and fall. It's always better to cover your business and protect it from the unforeseen. Your business is unlikely to burn down too, but you probably have insurance just in case. Workers comp insurance is no different.
4. And last, but not least, the myth that medical care in the workers comp system is too expensive.
The truth is that there are programs in place to contain costs in the workers comp system. And, the inflation costs for workers comp has been in line with that of group health insurance. They have both gone up about the same rate according to the National Council of Compensation Insurance.
As a small business owner your primary concern is that long term health of your business. Having workers comp coverage may be on of the best things you can do to protect your employees and your business.