| Many companies object to carrying Workers' | | | | are "ladder states," meaning liability goes up the |
| Compensation (also called Workers' Comp or | | | | ladder until someone can pay, they want to |
| Comp) coverage. Some of the most common | | | | ensure they don't get stuck with your claim...and |
| reasons include: | | | | reasonably so. Likewise, you may be responsible |
| It's too expensive | | | | for the claims of contractors and volunteers who |
| I'm exempt | | | | don't have coverage, as some states require that |
| I don't have any employees | | | | you provide Comp for them or again, remain liable |
| I only use subcontractors or volunteers | | | | for their claims. This does not change their |
| My employees are family | | | | contractor or volunteer status. And, compensating |
| I have health insurance | | | | workers with free rent, free admission to a |
| The work's not hazardous | | | | concert or other non-monetary consideration is |
| Let's look at these attitudes in a different light: | | | | still compensation, and you're probably still liable for |
| "It's Too Expensive," or "I'm Exempt" | | | | their work-related injuries. |
| Even if your state provides exemptions from the | | | | "My Employees are Family" |
| coverage requirement that a company can elect | | | | Aren't these the people you want to protect the |
| to exercise, exemption from the coverage | | | | most? And don't they look up to you as their |
| requirement is not exemption from liability. The | | | | leader and expect you to do the right thing by |
| employer remains liable, and loses the sole | | | | them? Treasuring the relationships and helping to |
| remedy protection that an employer who carries | | | | preserve everyone's financial and emotional well |
| Comp enjoys. In other words, the employees can | | | | being seems to me to be even more important |
| sue the employer since the employer doesn't | | | | when employees are family. Typically, this is not a |
| have Workers' Comp. If he had it, they could not | | | | reason for exemption to state Comp laws, and it |
| sue unless he were grossly negligent. You may be | | | | shouldn't be for any employer. |
| comfortable with them taking what you have - | | | | "I Have Health Insurance" |
| but will you be comfortable letting them take | | | | Great. Yet if you're injured and can't work, who |
| future earnings as well? Defense costs alone can | | | | will pay the premiums? If you're injured badly, will |
| be hundreds of thousands of dollars, and if you're | | | | your insurance be cancelled or your lifetime limit |
| fighting a case it's harder to be otherwise | | | | be reduced, affecting coverage you might need |
| productive in your business. In addition there's the | | | | for treatment of a heart attack or other serious |
| cost of the medical bills themselves, which without | | | | illness? If so, will you qualify again? At a |
| Comp, the employer will also have to pay out of | | | | reasonable price, without excluding your injured |
| pocket. | | | | body part? Does your health insurance exclude |
| Workers' Comp benefits include lost wages and | | | | work-related injuries? Is this better than lifetime |
| retraining if a worker can't perform the same job | | | | medical benefits for a covered work-related |
| he had before, as well as lifetime medical costs | | | | injury? |
| for work-related injuries. Further, your employee's | | | | "The Work's Not Hazardous" |
| minor children may be able to sue the employer | | | | If you or your workers don't type, lift, drive, sit |
| for loss of consortium and more until at least their | | | | for long periods, perform repetitive tasks, feel |
| 18th birthday. | | | | high levels of stress, interact with others, have |
| Thus, Workers' Compensation coverage is very | | | | exposure to hot coffee, an uneven sidewalk |
| valuable, and going without coverage can be very, | | | | coming into your office or other factors that |
| very expensive. | | | | could give rise to a claim, you may not need |
| "I Don't Have Any Employees," or "I Only Use | | | | Comp. |
| Subcontractors or Volunteers" | | | | Should YOU carry Workers' Compensation |
| Unless you have no employees and are in a | | | | insurance? |
| home-based business and people come to you, | | | | Information is for general information only. |
| your landlord for your business, your clients, | | | | Contact your agent or broker for specific advice |
| dispatcher or your General Contractor may | | | | for your situation. |
| require you to carry Comp. Since many states | | | | |