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Why Should a Small Business Owner Have Worker’s Compensation Insurance?

workers compWorker’s compensation insurance may seem like an unnecessary expense, but it is not. Having a worker’s comp policy will help you protect your business assets. The Arizona state laws have set in place the requirements for covering an injured worker’s medical bills and a weekly paycheck. Worker’s comp insurance will help to avoid any lawsuits or out of pocket expense for injured workers, failing to carry coverage however means that you will foot the bill.

 

Finding the Right Insurance Broker

Many times the insurance broker you already have in place for your other business insurance will be able to help you establish your worker’s comp insurance. If your current broker cannot help, you will want to do some research to find one that you can work well with. It should also be noted that each insurance company will have a different requirement for a down payment and monthly payments.

A good way to locate a good insurance broker is by asking any friends that have their own business and use worker’s compensation insurance. They can give you first hand advice on who works well for them. Either way, be certain to interview potential brokers, taking the time to select a great broker can save you thousands on your worker’s compensation insurance and subsequent claims as well.

 

Benefits to You

Having worker’s compensation insurance will protect you from any lawsuit related to an injury or occupational illness involving your worker’s. You may go years without ever using the worker’s comp insurance, but then there may be that one incident that will cost you millions of dollars. One lawsuit could bankrupt the company you have spent years building. Worker’s compensation insurance is a safety net for your company’s assets. If a worker gets injured and you do not have the correct type of worker’s comp insurance, you could be covering the cost out of your business funds, not to mention the lawsuit could take everything you have left.

 

Worker’s compensation insurance is a must have, especially for small business owners just starting out. Unfortunately there are many people who will take advantage of a small business that does not have any type of worker’s compensation insurance. Because of Arizona’s law stating there is a no fault policy on injuries, you can be held liable for any and all injuries your employees may receive on the job, so failing to carry worker’s compensation insurance would be a big mistake.

How The Return To Work Program Can Save You Money On Worker’s Compensation Insurance

workers compWorker’s Compensation Insurance can be an expensive investment; however, it is not optional as the government requires that every business carry it. The cost of this insurance depends on the company’s Experience Modification. The Experience Modification (Ex Mod) looks at loss history for the company. In other words, the higher the amount lost, the more that you will pay. There are ways to reduce the amount that you pay for Worker’s Compensation Insurance and one of them is to implement what’s called the “Return to Work Program.” The way that you save money on worker’s comp insurance is that it helps you keep your Ex Mod lower.

What Is “Return To Work?”

In order to understand how you can save money on Worker’s Compensation Insurance with the “Return to Work” program, you need to understand what the program actually is. First of all it is also known as Transitional Work or Modified Duty and it is a program that will help your employees get back to work in a quick and safer manner. An example would be an employee who is injured badly enough to not be able to perform their original job duties, but may be capable to do something else in the office like filing or answering phones, so the Worker’s Compensation Insurance is reduced because the employee is back to work sooner.

Setting Up The Program

You should know that the positions which are created in the “Return to Work” which tend to save you money on Worker’s Compensation Insurance should not necessarily be full time. What is needed is that the employee is back to work and earning some money. Some of the companies that can provide you with Worker’s Compensation Insurance will also gladly help you set up the “Return to Work” program. If the insurance carrier you are using currently cannot help you with the creation of the program, talk with your insurance broker, they are a value resource.

Does your business need worker’s compensation insurance?  This article will help you decide.