Getting insurance for employees too many business owners usually seem like a quagmire. This is brought about by a lot of misinformation about insurance for employees. Though regulations may vary according to the type of business, generally an employer is required to provide some insurance cover to his/her employees. Even if an insurance cover is not required in your area, getting one is a safe bet, otherwise job-related illnesses and/or injuries can lead to major costs for the company in case it is not covered. Following are five common myths that need debunking;
I have just a few employees mostly on part-time basis
No matter how many employees you have or the kind of work agreement they are on, getting an insurance cover will help in paying medical expenses for work-related illnesses and also compensate for lost wages to employees. In case the company is found negligent in any way, the insurance cover will protect a business owner from employees who sue for large amounts in damages.
I won’t be sued by my employees
If employees are not covered by a compensation plan they might sue you they have to continue paying their bills and putting food on the table so never say never. A suit in court can cost a business a lot of money; it can even bring down a company if it is not stable financially. If the company is found guilty and is required to pay punitive damages an insurance cover will help limit its liability, cover costs of the lawsuit and sometimes prevent the employee from suing altogether. People are selfish and anyway we all have got our own best interest in mind, so don’t expect your employees to hold back and let things pass for your own good.
Insurance is too expensive
In a way insurance might seem expensive but if you do a thorough analysis, you will find out it is better than paying out of pocket. Sometimes a workers’ compensation policy cost might seem expensive in comparison with the expenses of an injury, however, the cost of lost wages really make out of pocket settlement expensive if a worker stays out for long. The matter is even made worse if the employee suffers a permanent impairment. In such a case having a worker’s compensation plan will help you pay for it
My workplace is safe; No one will get injured
There is no ideal work place where everything is just perfect. Mistakes do happen leading to unforeseen injuries. If a business owner thinks that his/her workplace is safe, a minor mistake could destabilize those thoughts in a flash. It is good to strive to put up a safe working environment but it is even better to have an insurance cover for any eventuality.
Medical costs in employees’ insurance covers are too high
Although statistics show that this is true, it is not a good enough reason not to have a cover. There are laws and regulations that are being put in place to curb this inflation and streamline employee compensation. Have your NI Card always on the ready and if it is lost do fast track its replacement to ensure you are always readily prepared for any eventuality.
