Statistics show that more than 7 million workers are injured on the job every year. No industry is exempt from the risk of a workplace injury or illness. Workers’ compensation insurance helps with these incidents by covering many of the costs associated with a workplace accident. However, is workers’ compensation just for big businesses that hire hundreds of employees or do small businesses need this insurance protection too?

    Short Answer – Yes

    According to LoPriore Insurance Agency, business owners face many potential risks regarding their business and assets, resulting in decisions regarding insurance ranking among the most crucial when it comes to protecting said business and assets. When it comes to workers’ compensation insurance, there is no decision to make. It’s a requirement. Most states, including the state of Idaho, require all businesses to carry workers’ compensation insurance, unless they are explicitly exempt, such as sole proprietorships. This insurance is designed to protect both the employee and employer in the event of a minor or serious injury. It enables the injured employee to obtain the immediate medical treatment and care they need and reduces the out-of-pocket expenses for the employer.

    Worth the Cost

    The good news is that workers’ compensation insurance is typically very affordable. The costs are based on the employees’ salary and job risk factors. According to Insureon, workers’ compensation covers most, if not all, of the expenses related to a workplace accident, including medical treatment, lost wages, temporary or permanent disability, rehabilitation, transportation expenses, vocational training, and more. Without this protection, the employer would be responsible for covering all these expenses. Just one minor injury could cost the company thousands of dollars and one serious injury could easily bankrupt a small business. Since you can never predict when a workplace injury will occur, it’s vital to maintain workers’ compensation insurance at all times.

    Gets Employees Back to Work

    Believe it or not, workers’ compensation can streamline the return-to-work process and potentially enable the injured employer to return-to-work faster. The insurance company will work directly with you, the injured employee, and the doctors handling the workplace injury to set a return-to-work schedule and to determine if any job modifications must be made when the employer returns to work. The goal is to help the employee return to work as soon as they are healthy enough.

    Workers’ compensation insurance is not optional, it’s a requirement. Not only is it a legal responsibility, but this type of insurance can protect small businesses from substantial loss in the event of a workplace injury. The reality is that your company, no matter how small, cannot afford to go without this insurance protection.