Dear Not So Insured

May 17, 2018


Insurance is complicated. And when you are a business owner, it is even more so.  Not only do you need to insure yourself but you also have to cover your employees, and knowing what you need to get and how much can make your head spin.  At a minimum, you will need to have worker’s compensation. 


Worker’s Compensation is a state regulated insurance that covers an employee in case of injury or illness on the job regardless of fault.  It is also vastly different than long term or short term disability insurance.   Long term disability covers lost wages of an employee who can no longer work due to a disability incurred that was not related to work.  Short term disability is very similar but it is paid out for a shorter time period.  Both long term and short term are often considered benefits provided by a company to employees while worker’s compensation is required. 


Worker’s compensation also protects you and your business from any employee lawsuits filed due to the injury or illness obtained by the employee. Any business environment has the potential for employee injury.   In industries such as construction and trucking, there is a greater risk of injury. The costs of medical care, rehabilitation treatments and lost wages are covered by worker’s compensation when the injury occurs while the employee is on the job. 


In some instances, you may be required to cover freelance position workers as well. Having insurance allows you to react once an injury has occurred.  But there are ways to help reduce the odds of a claim by having a safety plan in place.  No matter the business, it will serve your company to have written procedures on how jobs are to be performed and make sure all employees are properly trained on the use of equipment. With the economy the way it is, employers are often looking for ways to cut costs and often consider skipping this type of insurance.


This is not only unwise, it is illegal in most states. If an employee is injured and you do not have coverage, you could face the possibility of paying expensive medical bills as well as lost wages.  Further, penalties for not being in compliance with the law can be applied and your business may be shut down until you have a policy in place. It just isn’t worth the risk to not be insured. Aside from the financial inconvenience of having worker’s compensation insurance, you will experience improved morale. 


When you provide your employees with insurance, you are telling them you value them and their safety.  Without that coverage, you may not keep employees for very long and they will move onto another company that does.


Not all worker’s compensation insurance policies are the same. Depending on your industry and past history, your premiums and coverage will vary.  It is best if you obtain insurance coverage through an agent like California Southwest Insurance Agency.  Give us a call today so we can help you find what coverage is best for your company. Phone: (949) 588-8844

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