What Your Small Business Should Know About Workers’ Compensation

Running a small business, you might think workers’ compensation is a waste of resources. While it’s true that the highest claims happen in industries such as construction, other industries such as transportation, finance and other professional services have also seen costly claims that your company would have to pay out of pocket without insurance in Wilmington, DE. Here’s what your small business should know about workers’ compensation.

State Requirements Vary

You shouldn’t decide to go without workers’ comp until you learn the laws in your particular state because regulations differ. Many states require you to cover all employees while others only require coverage if you have four or more. Only one state has optional coverage – Texas – but even there, you can still be held liable for employee injuries, so it pays to be insured.

There’s a 50/50 Chance an Employee Will File a Claim Within the Next 10 Years

Just because your business is small, doesn’t mean that you’re exempt from injury claims. Studies have shown that there’s a 50 percent chance that your small business may experience a claim in the next decade. All it takes is one claim for you to be liable for medical bills and lost wages if an employee is injured on the job. Accidents happen more often than you’d think and the financial consequences could put you out of business if you’re not insured.

Small businesses should be aware of the dangers of not purchasing workers’ compensation insurance in Wilmington, DE. Buying the right policy not only protects employees but also your business.