When your business is more on the reserved side and your financial gain isn't massive, the thought of investing in business insurance can be a threatening idea, especially when it comes to workers compensation insurance. As the owner of a small business, there is no doubt that you will be stressed with the fact that you have to keep your costs low where insurance is concerned, but workers comp insurance is one service you just cannot skip because most states do require you to carry it. However, there are a few workers comp insurance myths that can get in the way of you keeping your business rightly covered. Here is a quick look at these myths and the facts you need to know as a small business owner.
Myth: Your business only has a few employees so there is no need for workers compensation insurance.
Fact: It doesn't matter if your small business has only a few employees, you could still be required to carry workers comp insurance by state laws. For example, the the state of Arkansas, any business with three or more employees must obtain coverage. Plus, in the event that one of the few people on your staff gets injured at work, you are definitely going to need workers compensation insurance to protect you. If just one person gets injured and you don't have this insurance in place, the costs associated with paying for their medical bills and time off of work can be enough to make your entire business sink.
Myth: You don't need workers compensation insurance because there is nothing dangerous about your business.
Fact: It may seem like your small office space or business building is about as non-threatening as any business could possibly be, but there is always a potential for employee injury. Workplace injuries happen in all sorts of ways, whether it is just a slip as someone is walking across the floor or a bang on the head from a falling object. Therefore, it really doesn't matter how low-risk you think your workplace environment is, an injury can still happen unexpectedly.
Myth: Part-time employees do not count as regular employees where workers comp insurance is concerned.
Fact: If you have a small business and do not employ people who work for you full time, you may think that you don't have to have workers comp insurance. However, every employee on the payroll counts where workers compensation is concerned regardless of their employment status. Therefore, if you employ several part-time employees and no full-time staff at all, you will likely be required by law to obtain workers comp insurance to cover them.
For more information, contact local professionals like Erickson Law Office.