Business ownership is a challenging endeavor – in addition to worrying about your customers, cash flow and overhead, you must also be aware of your liability risks. For many business owners, risk management is a key process that may dramatically impact the future of the company and its success.
There are many strategies for managing the risks associated with operating a business, including insuring the entity, creating a comprehensive employee handbook and conducting thorough background searches on potential employees. Purchasing the appropriate workers compensation coverage is also an important step to reduce your entity’s financial liability.
Workers Compensation and Business Risk Management
New York workers compensation insurance is not only required by law, but is also an invaluable protection for employees and business owners alike. The protection workers compensation offers to your business dramatically decreases the financial risks and expenses you may incur in the event of an employee injury on the job.
Without the proper workers compensation insurance, you may be held liable for the losses and costs resulting from an employee injury, including:
• Medical bills: The costs of medical care from even a minor accident can quickly add up; care for more serious accidents can lead to hundreds of thousands of dollars in treatment expenses.
• Ongoing care: If your employee requires ongoing physical therapy or routine treatment following their injury, you may be held responsible for paying the costs associated with their treatment. These costs can quickly become unmanageable without the proper workers compensation insurance.
• Lost wages: Without workers compensation coverage, you may be ordered to pay a large percentage of your employee’s lost wages.
• Legal fees: If an employee suffers an uncovered injury in the workplace, they will likely hire an attorney and file a lawsuit in an effort to recover for their losses. The legal costs, combined with any resulting judgment ordered in the case, can be very costly.
Purchasing the right workers compensation coverage for your business can significantly reduce your risks and your potential liability in the event of an employee injury.
Do you consider workers compensation part of your company’s risk management strategy? Share your opinion with your neighbors in Buffalo, Rochester, West Seneca, Niagara County, Lancaster, Hamburg, Clarence, Kenmore, Tonawanda, North Tonawanda and Cheektowaga by posting in the comments section below.
