4 Reasons Workers’ Comp Insurance Can Be Crucial For Your Business

Posted by Joe on July 8th, 2019

In order to ensure that your company runs smoothly, it is important to ensure it with commercial insurance. Commercial business insurance does not only offer protection to a business against various possible lawsuits, but also prevents it from severe financial losses. A type of commercial insurance - Workers’ Compensation may not be the first coverage that comes to our minds as we shop for business insurances, but it should not be overlooked as it is a significant part of any business insurance policy. Through this program, business owners have the assurance that they will not be sued by the employee/s (in most cases), and employees are provided with benefits and medical care. Here are 4 reasons Workers’ Compensation Insurance is crucial for your business-

• For Legal Compliances - Most states require Workers’ Comp commercial insurance by law. Not having this coverage could put your company at risk of getting fined or even shut down for non-compliance. The insurance makes your business legally compliant with state regulations.

• For Business Loans - When you have Workers Comp insurance, business lenders and foreign investors alike are much more likely to approve your application for a loan. This insurance gives an impression to the lenders that you are a responsible employer who plans ahead.

• To Obtain Financial Stability – For any business, big or small, financial stability is extremely important in order to meet its present and future objectives. Business owners often default on payments due to costly injury claims by workers. Workers’ compensation insurance coverage could help you prevent yourself from financial instability arising out of lawsuits, and help save millions of dollars.

• For Tax Benefits – Payments towards Workers Compensation policy are tax-deductible. So, you can always use additional business tax credits to decrease your year-end tax burden.

Though some states operate state funds to provide Worker’s Comp coverage, most states facilitate you to purchase your policy through an agent or insurance broker. Since each state’s Worker’s Comp laws are different, it is very important for a business to acquaint itself with the laws of the particular state and those pertaining to the business specifically.

Apart from Workers’ Compensation, other commercial insurances that you can opt for are:-

• Auto Insurance
• Directors & Officers Liability
• General Commercial Liability Insurance
• Professional Liability (E&O)
• Business Owners Policy (BOP)
• Business Interruption
• Property
• Surety Bonds
• Umbrella Insurance

Looking for the right insurance coverage that is unique to your needs? Contact Stanley Dean, CLU!