Does My Business Need Workers Compensation Insurance?

When we sit down with our business clients to discuss workers compensation coverage here at The Hoffman Agency, we like to take a close look at exactly what it is you feel workers comp is all about. Do you understand how it helps you AND your business? Do you understand how it benefits your employees both on a personal and professional level? There are times when we find clients who do not understand the issue and are somewhat lost as to whether their business really needs workers compensation insurance coverage or not.

Many people think of workers compensation in very simple terms as something that is just there to protect an employee in case of on the job injury.  While it is true that it can help to provide medical and financial support in the event of a job related injury or occupational disease, it does so much more. It certainly helps to protect both your employees and their dependents from the financial burden that may accompany such issues. The important thing to remember however is that it also protects YOU, the business owner. Generally speaking your injured employee accepts medical and monetary benefits in lieu of bringing suit against you for the accident.

This allows you to limit your liability in such cases and to shift the issue away from assigning blame. Rather, emphasis can be better placed on helping your employee regain their health and come back to full duty. This alone should be enough to help you decide whether your business requires workers compensation insurance, but if it hasn’t you should then consider the issues that could arise from not having the proper amount of coverage if any at all. Never mind the fact that it could leave you wide open to lawsuits on behalf of injured workers. Think about what it would mean to your business from the state’s perspective.

Employers who fail to carry at least the state mandated level of insurance could face civil court. If it comes to this point you could be served stop-work orders and fines may be levied. The court may decide to hit you with injunctions and assessments leading to the exposure of your personal assets and/or other business assets. In all honesty, very few business owners could truly afford the sort of liability that would accompany trying to skirt around North or South Carolina workers compensation requirements.

Perhaps to put a finer point on things, per the North Carolina Workers Compensation Act – Chapter 97 –  the duties of employers as far as they relate to coverage issues are laid out quite explicitly. Most businesses have to either show financial capability to cover any workers comp related costs or must carry at least the state recommended minimum amount of coverage. Is there a great deal of legal verbiage to this act? Of course, it’s the state government, right? Rather than give yourself a massive headache trying to decipher exactly what requirements you must fill in regards to workers compensation give us a call. We are always more than happy to help out!