As a business owner, you need workers’ compensation coverage. Workers’ compensation covers your business if an employee is injured while performing his or her work duties. For instance, if an employee pulls a muscle lifting boxes or if an employee is injured in a car accident on the way to a business meeting, without coverage, you are liable and the employee could sue you. To have workers’ compensation coverage prevents lawsuits. In some cases, you can even insure yourself. Here is when you may want to do it.
When to Self-Insure
Self-insured workers comp may be appropriate for some businesses. What it means to self-insure is that your business would pay the costs of any claim. If you want to control or lower your costs, then self-insurance may be right for you, explains the experts at https://www.caitlin-morgan.com. As an employer, you would have control over the claims. In addition, you pay claims as they happen, rather than paying upfront costs.
For some businesses, it makes sense to self-insure. In a lot of states, this is possible as long as your business can afford to cover its employees in the case of an accident. Keep in mind that without coverage, you could be held liable for any injuries or illnesses that your employee incurs.