Is Workers Compensation coverage too expensive?
I hear from a different source that he is afraid of the potential costs. Let’s explore.
First, what happens if he continues to put off getting workers compensation coverage? Suppose there is a claim. Small chance of that, you say? With a workers compensation policy also comes instruction on how to avoid claims and losses. If he is operating without coverage, he is more likely to have a claim. If that happens, his business is personally liable for any worker injuries.
Employees often get hurt while not on the job, wanting to collect for their injuries and time off; so they file a claim. They don’t know that there is no workers compensation coverage in place.
Alternately, they could be on an errand for the company and get into an accident in their vehicle. In either case, not only is the business owner liable for any claims payment, but also for attorney fees. Not cheap.
Then there is the law. It says that you can be fined up to $1000 per day per employee for each uninsured day. If a claim does get filed, they will be exposed as being non-compliant with the law.
And lastly, new companies often get charged a slightly higher rate, just because the owners are not experienced enough to avoid them. Companies who have been operating without coverage usually get surcharged an even higher rate as a type of punishment for non-compliance.
So, is workers compensation coverage too expensive? It depends. Would you like to roll the dice?
Please call us to discuss the options. 888-885-3388