Dangers Of Not Carrying Workers Compensation Insurance

​As a business owner, you should be fully aware of the importance of workers' compensation. First of all, every state requires businesses to provide workers' compensation insurance. Once they reach a certain number of employees. The limit varies depending on the state. But most require insurance coverage upon hiring.

When managing a small business, it is understandable you will find ways to cut costs. It could keep your business going. But, one area that you should not cut costs on is workers' compensation. You may think of it as an unnecessary expense. If none of your employees got seriously injured while working.

Fines and Jail Time 
In states like California, if you don’t have workers' compensation insurance you commit a crime. You can get punished by imprisonment or a minimum $10,000 penalty. The state could also penalize you for not insuring your employees. Suppose the judge finds you guilty of non-compliance with workers' compensation laws. In that case, the court may require you to pay a certain amount to an employee at the time of their injury.

Thus, you need to check the laws of your state when it comes to workers' compensation. If found violating the worker's compensation law, you could be charged with fraud and pay stiff penalties.

Lawsuit From Employee 
Not only will you face fines and imprisonment for not carrying workers' compensation. But the employee could also sue you for their work-related injuries. They could file a lawsuit to recover their medical expenses. Without insurance, you'd be responsible for paying all bills associated with the injury. It's negligence in carrying out workers' compensation.

Most worker's compensation insurance features an exclusive remedy clause. That protects the business from employee’s civil lawsuits over injury so long as the insurance covers it. But without that, you are at risk of getting sued by an injured employee.

Workers' compensation insurance may be an expense to you. You will have to pay for the costs such as medical expenses, lost wages, and legal fees. Without workers' compensation, it can harm your business. 

At CSIS Insurance Services, Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (888) 501-2747. You can also request a free quote by CLICKING HERE.