Workers' compensation provides financial support to business owners. Some companies don't see it as an initial benefit. It always is.

In nearly all types of employment, it is possible for an employee to suffer an injury. If this occurs, the business often must compensate the employee for losses. This includes paying medical bills. It may include paying for missed time at work. The costs add up. Workers' compensation insurance helps minimize those risks.

Does Your Small Business Need It Legally?

State laws differ here. Most companies with 50 employees or more will need coverage. Some states require only larger organizations to maintain it. Others require all to do so. To find out, contact your local OSHA officials or an employment attorney. He or she will provide more clarification. This includes the type of coverage required. It may also include required amounts of coverage.

Why You Need It Anyway

Most companies benefit from workers' compensation even when not required by law. This coverage reduces your risk of having to pay out of pocket for losses. Here are some examples.

• Your office employee falls and strikes her head on a desk corner. She needs surgery to stop a bleed.
• Your factory worker misuses a piece of machinery. He loses his ability to use his hand after an accident.
• A worker cleaning an office space inhales fumes from equipment. He becomes ill. He spends a week in the hospital.

In these cases, a business owner may pay many of the costs involved. This includes medical costs such as hospitalization. It includes payment for missed time at work. Employees with long-term injuries may need rehabilitation. Others may be unable to return to work. In this case, a settlement is often necessary. The costs add up very quickly. Many times, workers' compensation will provide protection for these losses.

Small business owners often have limited funds for such payments. A single incident could lead to financial hardship for the company. Many of these cases are litigious as well. That means workers filing claims go to court to fight for them. This adds to the expense paid by the company. Workers' compensation might eliminate those concerns. It pays the costs necessary. It pays for settlements. In some situations, it also pays for legal representation to defense.

Even if it seems like a cost you cannot afford, you need it. Do not overlook the addition of workers compensation insurance. Speak to your business insurance agent about it.

Need business insurance? Call Raymond Longoria Insurance at 956-581-1034 or 888-296-0345 for a fast, free policy quote.

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