Avoiding Legal Trouble

Two Of The Most Common Myths About Workers Compensation That Small Business Owners Need To Know

If you're a small business owner, you know that it can be tough to manage all the legalities that go into running your business. When it comes to insurance for your employees, things can be even tougher to figure out. Most business owners are basically familiar with what workers compensation is, but they don't understand it fully. In fact, many small business owners choose to do without workers compensation insurance entirely. Because of that, there are a lot of myths that surround this area.

Here's a look at some of the most common myths about workers compensation, and why you as a business owner need it.

Myth #1: You only have a few employees, so you don't need workers compensation

The average workers compensation claim costs about $65,000. Workers compensation insurance costs about 1% of an employee's salary, or around $6 a week. Those numbers alone should be enough to show that your company needs workers compensation insurance. An uninsured claim can be devastating to a small business. Some employers choose not to have this insurance and claim they'll simply pay out of pocket if anything were to happen. But as these numbers show, one injury claim can make up for 100 workers compensation insurance payments.

Myth #2: Your company is a very safe environment where accidents can't happen

When most people think of workplace injuries, industrial accidents involving forklifts or heavy equipment come to mind. So why, for example, would a small family-run store want to protect against workplace injuries? Especially if the owner takes steps to make sure the working environment is safe, it may seem like you're protecting against something that won't happen. But an injury can happen anywhere in the workplace. The vast majority of workplace accidents come from inconspicuous places. And no matter how safe you are, an accident can happen that's beyond your control. A product an employee is using could be defective, or there could be an accident you had no way of planning for. Even more, an employee could trip and fall anywhere. There are hazards in every single workplace. Absolutely no business is exempt from someone being injured on the job.

Of course, even if you avoid these myths and have your company covered, this is still a very complex area. It's often best to trust a professional workers compensation lawyer to help make sure you have everything as it should be. A workers compensation lawyer likely has years of experience in this area and knows exactly what you need to be protected.