According to Occupational Safety and Health (OSHA), every year in America, there are more than 7 million injuries that happen in the workplace and sadly more than 5,000 fatalities. If you are a new small business owner, it is important that you take the necessary precautions in the workplace, so that your employees are always protected. The U.S. National Safety Council (NSC) has reported that every year workplace injuries cost American businesses more than $170 billion a year. If your new business is found liable for something and ends up paying out compensation, it could put an end to your business. This is why it is essential to arrange workplace liability insurance – to cover you if anything does go wrong.
Employers Liability Insurance
There are two types of workplace insurance that you will need to consider as a small business owner. The first is Employer’s Liability Insurance – this is compulsory because as an employer, you are responsible for the wellbeing and safety of your employees while they are at work. Employers Liability Insurance provides you as the business owner with protection, particularly if your business is blamed for an employee’s illness, injury or even death. Wrongful death settlements are to compensate a worker’s family for the loss of earnings if something happens. It is important that you are covered for every eventuality.
Workers Compensation Insurance
The other type of insurance that you will have to consider as a small business owner is Workers Compensation Insurance. This covers any medical expenses if an employee is injured at work, and often covers a proportion of lost wages too. Employees don’t have to sue their employer in order to qualify for compensation. Most states in America will require you to have Workers Compensation Insurance, but not all, so you will have to check the laws in your state. However, it is worth considering the moral responsibility that you have as an employer and making sure that you are covered means that your employees are looked after if anything goes wrong. Looking after your employees can improve loyalty, which is important if you are running a new small business.
Organizing your Insurance
When you are organizing Workers Compensation Insurance, you will need to make sure that it covers medical care, both temporary and permanent disability benefits, supplemental job displacement benefits, and death benefits. Workers Compensation Insurance has no ceiling on the policy amount, so you should make sure that there are no limitations in place. Your Employers Liability Insurance should cover any negligence lawsuits over occupational diseases and workplace injuries. It is worth noting that this type of insurance doesn’t cover lawsuits that are regarding discrimination, harassment, or wrongful termination – you will need a separate policy for these, called Employment Practices Liability Insurance (EPLI).
When you are running your own small business, you must have the right insurance policies in place to protect your business and your employees. This will ensure that you are always covered if there is a problem in the workplace.
