4 Reasons to Get Workers’ Compensation for Your Businesses

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Ways to Get Workers’ Compensation for Your Businesses in San Diego, CA

As a California business owner or manager, you’re probably aware some costs are necessary for doing business. Working capital and money for inventory replenishment are obvious outlays, but another expense that needs consideration is money for workers’ compensation insurance. Here are four reasons that, in addition to commercial insurance, San Diego businesses should have workers’ comp.

1. Obey California Law

You need to be familiar with the laws of the state in which your business operates because state courts have control over workers’ compensation administration. California laws influence workers’ compensation benefits—namely, the amount of benefits an employee receives, the injuries that are covered, the evaluation of injuries, and how care will be provided. Furthermore, the state decides whether it will provide the insurance or an insurance company will do it. California also determines how claims are managed and/or how disputes are handled.

2. Protect Your Business

You could face litigation as a result of an employee’s work-related injury. If the employee subsequently sues you for his or her pain and suffering, you could go to court and be required to provide compensation. The employee could also sue for pay because he or she is unable to work. If you then have to compensate the employee for medical expenses, your business may take a big financial hit, which could lead to the business declaring bankruptcy. On average, businesses pay $170 billion yearly for injury expenses, and this money comes straight out of profits. Workers’ compensation insurance often prevents an employee from suing a company for negligence.

3. Help Injured Workers Recover

Workers’ comp also assists the injured employee with any additional job training or rehabilitation needed. This rehabilitation is for getting the employee back to his or her same job. However, if this isn’t feasible, the compensation can help the employee get trained for other employment. In addition, when your employees know you’ll be there for them in case of a work injury, it fosters trust. Other employees will also notice the way injured employees are treated, which may build the team even more.

4. Build Employee Morale

Not providing workers’ compensation benefits can reduce employees’ motivation and morale. These benefits are vital to keeping your employees’ loyalty. When you provide a safety net, you tell your employees their safety is important and that you’ll do whatever is necessary to take care of them. Workers’ comp insurance covers occupational diseases in addition to injuries, no matter who is at fault, which affects employee morale in a positive way.

Business owners need workers’ comp because operating a business means assuming certain kinds of risk, including the possibility of employee injuries. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance, San Diego residents call on the trustworthy professionals at Altra Insurance Services. Reach out to us today at 619-474-6666 to learn how we can satisfy all your insurance needs.

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