The Legal Side Of Workers’ Comp

The Legal Side Of Workers’ Comp

Carrying a good workers’ comp policy is a smart choice for your business. An injury to an employee on your premises can hurt both of you financially if you fail to carry the right coverage. Your employee will miss work and struggle to pay medical bills. You will be on the hook for those bills and could face a lawsuit from the employee. But that’s not the only legal trouble you could be facing.

Worker’s Comp And The Law

In many cases, it is not just recommended that you carry a workers’ comp policy; it is actually required by law. In order to protect employees from the life altering possibility of an injury on the job, many states require that businesses carry a certain level of workers’ comp coverage. Should you fail to comply with this requirement, you may find yourself in a wide variety of legal troubles.

First of all, if workers’ comp is a legal requirement, you will probably be required to present proof of your policy to your state licensing board for your license to do business. Failure to do so can result in the revocation or non-renewal of your license.

Lawsuits From Injured Employees

If you fail to carry workers’ comp and an employee is injured on your premises, you will very likely find yourself in court facing a lawsuit. You could be forced to cover all of the medical bills and missed wages for that employee out of your own pocket. Furthermore, the judge will not look kindly on you for failing to follow the law regarding your workers’ comp policy. You could face penalties that are far more expensive than simply paying for the policy in the first place.

Workers’ comp is one of those insurance policies that are simply a must for any responsible business. The fact that it is required by law is only one side of the coin; you are responsible for what happens to your employees when they are in your place of business and on the clock. Providing an insurance policy for potential injuries protects them, and it also protects you. Be certain that you are meeting all of the legal requirements to do business in your state by discussing your workers’ comp coverage with your insurance agent and checking regularly to ensure everything is up to date.

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