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.

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