Owning a business is already risky enough, so you should do everything possible to protect yourself against certain liabilities. An insurance plan that provides workers' compensation can safeguard your business from major financial losses if any of your employees get hurt on the job. A good worker's comp insurance plan that gives you adequate coverage will be one of the smartest investments that you'll ever make for your company.

Required by Law

Most states have set their own workers' compensation requirements based on the number of employees a company has along with other factors. If you don't have a workers' comp insurance policy, you could be fined or even arrested if an employee gets hurt while working. Even the best lawyer might not be able to defend you if you face legal consequences for not having workers' comp insurance. 

Prevents Lawsuits

A workers' comp insurance plan can help you avoid getting sued by an employee who sustains an injury while working. If the injured employee is eligible for workers' compensation payments, your insurance company will pay the employee so that you won't have to dip into your own business profits to cover the costs. Medical expenses, lost work wages, and other expenses that the employee needs to be covered while they aren't able to work because of their injury can add up and cost your business a lot of money if you don't have workers' compensation insurance to pay the bills and the employee ends up winning a lawsuit against your company. 

Pays Death Benefits

A fatal accident might happen at your business, so you should get a workers' compensation plan that includes death benefits that will be paid to family members whose loved one died on the job. If your business operates in the construction industry or another high-risk sector, a workers' comp insurance policy that includes death benefits will be especially important to have. You won't have to worry about covering the funeral and burial or cremation costs if your policy will pay these expenses. Surviving dependents of the person who suffered the fatal accident at work can receive additional money from your insurance company to lessen their financial hardship.

Without a comprehensive workers' compensation insurance plan, your company is more vulnerable to financial setbacks and other penalties that could put you out of business. A workers' comp insurance provider can enroll you in a plan that meets all your coverage needs and gives you and your employees extra assurance. Contact a local workers' comp insurance provider to learn more.