In short the answer is no! When you ask an employer why they carry workers compensation the number one answer is “I’m required to by law”. This is a good answer and deserves to be the number one answer but are there other benefits? Sure, just as there are drawbacks. Just like General Liability and property insurance, workers compensation protects people from financial losses. But lets take a deeper look into the top workers compensation pro’s and con’s.
1- Workers compensation helps you protect the employees that run your business from financial loss. It pays them a portion of their salary when they are recovering from a job related injury.
2- It pays on going medical expenses from work related injuries and illness.
3- It helps get workers back to work.
1- It cost the employer money
2- claims usually give rise to the employers cost or premium
3- It is an employer expense that is not perceived as a benefit by employees. It’s the law.
In this article we are talking about the medical field but this does apply to all occupations. Employers should review there policy with a good independent insurance agent who can find a the most competitive company for their type of business. No one insurance company is the lowest cost carrier for all classes of business. They specialize in specific industries. Also, a safety group may be right for you? Safety Groups insure only members of the same industry and usually provide discounted rates and dividends. Some companies will do risk analysis for you free of charge to help you reduce claims and save money. Many companies offer weekly payments made with each payroll to reduce additional premium audits.