Workers’ Compensation Issues for Small Businesses

Overcome workers’ compensation issues.


Small business owners play a significant role in communities across the nation. They have been known to add value to their communities, providing the goods and services that locals need. Business owners know that there are many challenges to face when it comes to operating a small company – one of them being workers’ compensation. It’s an insurance policy that is required by law when you have employees. In this guide, we’ll take a look at some of the issues surrounding this type of coverage.


Financial Concerns

Small businesses tend to run on tight margins and almost always little to no profit within the first few years of operation. That means that every penny has to be accounted for and well spent. While workers’ compensation insurance does contribute to overhead expenses, the cost of going without this valuable coverage far exceeds the annual premiums such a policy costs. A workplace injury could potentially cost thousands – if not more – of dollars out of pocket if workers’ compensation insurance is not in place.


Limitations in Coverage

It’s important for a small business to understand what is and isn’t covered under their workers’ compensation policy. Although “workplace injuries” cover a broad range of incidents and conditions, every policy has its limits. Coverage is typically provided if a worker were to become injured through accidents or workplace environment conditions. If a worker is operating equipment in an unsafe manner or workplace environments are not safely maintained, then a fine and working environment changes will be required, not to mention an increase in your premium. What’s more, if an employee gets injured because of their own drug or alcohol use on the job, the insurer may not pay out the claim, so it is important for an employer to be aware of changes in employee behavior and take appropriate behavior.

 The team at Lou Aggetta Insurance Services can help you to secure reliable commercial insurance to safeguard your organization. Contact us today in Pleasant Hill, California to get started.