When it comes to Workers Comp Insurance
Can you sort out myth from reality?
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I only have a few employees, or mostly part time employees, so I do not benefit from workers compensation insurance.
Whether your company has one or 1,000 employees, having a Workers Compensation (WC) policy is a good idea. WC insurance can help cover the costs of medical expenses and lost wages for employees suffering job-related injuries. It can also protect you from workers who may sue for large amounts in damages, especially if your company is found negligent in any way.
Workers compensation is expensive. If one of my employees is injured I will just pay out of pocket.
The potential cost of an injury, especially if an employee decides to sue, will be much greater than the cost of Workers Compensation (WC) coverage. Out-of-pocket expenses to cover lost wages and productivity add up the longer an employee is out of work — and the most severe injuries can mean 50+ days off the job, or even permanent impairment. For example, just one lower back injury can result in months of lost wages, medical bills in excess of $50,000, and loss of earning capacity. WC insurance helps cover all of these expenses — and more.
I provide a safe workplace. My employees will not get injured and workers compensation would be a waste of money.
Reality: Even in the “safest” workplace, mistakes get made that result in injuries. And even the most minor injuries can cause major damages if your company isn’t prepared. Many employers strive for an accident free workplace and many post signs proclaiming the number of days without an accident. Rarely do you see 365 days without an accident on those signs — which is exactly why a Workers Compensation policy is not a waste of money.
Medical costs in the workers compensation system are too high.
Recent statistics from the National Council of Compensation Insurance (NCCI) — the organization that gathers data from most states — have demonstrated that medical inflation for workers compensation has been very similar to medical inflation for group health in the last several years.