Employees are the real asset of any business. To ensure their safety every state has its own laws regarding workers compensation insurance. This insurance covers all the medical bills, lost wages, temporary disability benefits, job displacement benefits, etc to assist workers to lead a normal life after getting into an accident at the workplace. 

Businesses that are high-risk such as hazardous industries or construction, need to purchase workers compensation insurance to only protect their employees but also their business in the long run. Here are a few reasons why as a contractor you need to purchase worker’s compensation insurance. 

1. Ensure Employee’s Safety

Construction site injuries are common due to the nature of the work. No matter how many precautions your company takes, occupational injuries are inevitable in this field. Some common construction site injuries are:

  • Falling from heights
  • Falling into holes or ditches on a construction site
  • Electrocution
  • Repetitive motion injuries
  • Being struck by objects 

These injuries can temporarily or permanently affect your employee’s work which can affect their life not only physically but also financially. When one of your workers gets injured at the workplace, this is where worker’s compensation insurance comes to play its part and saves you trouble. 

The worker’s compensation insurance covers all the medical expenses, lost wages in that duration, and temporary or permanent injury benefits that would otherwise be covered by your company for compensation. 

2. Required by the Law

Worker’s compensation insurance is the right of every employee. It is also required by the law to carry it. Imagine your worker gets injured at the workplace and he sues you for not having worker’s compensation that is a must for you to have for your employees. Not only you’ll put your business at risk but also yourself. 

In most states, it is required by the law to have worker’s compensation insurance even if they have one full-time employee such as in California. Also, for reactivating your contractor’s license, you need to have worker’s compensation insurance. In addition, your employee can’t sue you if he is insured. 

3. Saves You Extra Cost

Not having worker’s compensation insurance can cost you more than carrying it in the first place. The reason is when your employee gets injured in the absence of worker’s compensation insurance, all the medical expenses are now paid by your company. In addition, your worker can sue you for not providing him with his legal right. 

This can turn really bad for your company, as you have to cover the medical cost, hire a lawyer and waste your valuable time attending court sessions. Not only do you have to suffer financially but also it’s physically exhausting. Therefore, purchasing worker’s compensation insurance in the first place gives you peace of mind and saves you from extra trouble. 

The Bottom Line

In a nutshell, contractors need workers’ compensation insurance not only because it’s the legal right of their employees but also because it can save them time and money in the long run. 

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