When Should I Purchase Workers’ Comp for My Business?

If you are a new business owner, then you no doubt have a lot of things on your mind as you establish and attempt to grow your company. Amidst all of the activity though, one thing you don’t want to overlook is providing workers’ compensation to your employees, as it will become relevant if and when one of your employees is injured while on the job. Workers’ comp insurance is the way to go when it comes to preparing for an incident and will allow the insurance company to pay out funds that would otherwise come out of your pockets.

As a business owner, when is the best time to purchase workers’ comp insurance? As soon as possible is the best answer. This is not only true because it will cover you in the event of a workplace injury, but also because it is a legal requirement. In all but one US State, if you have a company that has more than four employees, it is mandatory by law to carry workers’ compensation insurance. Therefore, it is prudent to acquire this form of insurance as soon as possible to avoid fines.

Moreover, if you refuse or are unable to pay workers’ compensation to your employees, either through insurance or through self-insurance, the injured employee has it within his or her rights to lobby a lawsuit against you to win compensation. This is not a situation that you as a business owner want to find yourself in and this should be avoid if at all possible.

As a business owner, you should always carry workers’ compensation insurance and have a plan in place in the event of a workplace injury. If you have any further legal questions regarding workers’ compensation, we at the Franco Law Firm would be happy to answer them for you. We can be contacted via phone at (813) 872-0929.