5 Myths Business Owners Use To Avoid Workers’ Compensation

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businessman and businesswoman are handshaking over binders5 Common Myths That Business Owners Use to Get Out Of Having Workers’ Compensation

Are you a business owner? If so, your business needs a workers’ compensation policy. Don’t be like the many business owners who cover their excuses with terrible and inaccurate myths. We have heard the worst excuses when it comes to workers’ compensation coverage. We are here to bust open these myths and show you the truth about this necessary coverage.

First, let’s dive into what exactly workers’ compensation is.

What is Workers’ Compensation?

Workers’ compensation is an insurance policy that provides employees with no-fault coverage if they get injured or ill on the job. This policy does not only benefit employees, but it also protects the employer from personal liability lawsuits.

There are so many misconceptions about workers’ compensation. Read the five most common myths about workers’ compensation below.

1. “I provide a safe workplace. I don’t need workers’ compensation”

No matter how safe your workplace is, there is still the chance of employees becoming injured or even ill. Many business owners will argue that workers’ compensation is a waste of money for their business, but they couldn’t be more incorrect. Your employees can sue you for even the smallest injury. Don’t let your business lose thousands of dollars or even go out of business because of a paper cut.

2. “Workers’ compensation policies are expensive”

Although workers’ compensation policies are an additional cost to your business, they can help save you in the long run. If an employee gets injured or becomes ill on company hours, they can sue you for more than just cost of medical expenses. Depending on the severity of the injury or illness, your employees may be out of work for days, or even weeks. You will have to make up for their loss in labor and in wages. With a workers’ compensation policy, out-of-pocket expenses for medical and wages may be taken care of. This will help soften the blow from large costs.

3. “I only have a few employees, so I don’t need workers’ compensation”

No matter if you have one employee or 1,000 employees, you need workers’ compensation. Even if your only employee gets injured or ill on the job, they can still sue you. Think of it this way. Even if you only have one employee, can you afford to take the hit of losing your entire staff, along with compensating them for medical and wage expenses? Workers’ compensation can help keep your business afloat, even in the most detrimental situations.

4. “I don’t need workers’ compensation because my business is not labor intensive”

Just because your business does not involve heavy lifting, using power tools, or even operating machinery, this does not mean you are exempt from needing workers’ compensation. Every line of work should have this policy. If you think that your employees are safe at their desks, think again. Workers’ compensation covers anything from poor vision to back problems and other common injuries that are often overlooked.

5. “My employees would never sue me”

Unfortunately, they would. No matter how close of a relationship you have with your employees, when they are hurting from the costs of piling medical bills and no incoming wages, they will search for an answer. Suing you will be their best, and easiest, solution.

No matter the size of your business, it is crucial that you involve a workers’ compensation policy into your best practices. They will not only keep your employees covered from workplace accidents, but also protect your business from detrimental lawsuits.


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