Using Workers’ Compensation to Protect Your Bottom Line

In Texas, it is important for most business owners to carry workers’ compensation insurance. Even if you are a small organization or think you work in a low-risk industry, that doesn’t mean accidents won’t happen. If your employees get injured as a result, then you might be on the hook to pay them. Workers’ comp is a benefit not only to injured employees, but also to the business itself. It’s there to make sure you have a resource available to help you afford these costs. Consider just a few of the ways your policy can be of benefit. 

Understanding Workers’ Compensation  

 To understand the benefits of workers’ comp, you have to understand how the program works. 

Workers’ compensation helps employees who get hurt or sick on the job pay for costs of recovery. So, if an employee falls while working and suffers an injury, then workers’ comp can apply. It might pay for their medical bills, rehab costs, work retraining and a replacement income during their recovery.  

Because of the benefit to employees, most states require most or all employers to carry workers’ compensation insurance. Texas is a bit different. While it does not require employers to carry workers’ compensation, it still places liability on the employer. Employees therefore have a right to sue the employer, and employers might still have to compensate that employee. By buying workers’ comp insurance, employers can avoid the financial strain of paying out of pocket.  

Security Benefits for Employers  

Don't assume that you only buy workers' compensation for the benefit of your employees. The bottom line is you can't prevent every accident in your business. While you hope to never have to use a workers' compensation policy, it's better to have and not use. 

By having workers’ comp, you’ll create a vessel to address an injury claim. Policies provide terms that instruct businesses and employees how to proceed with the claim. They also clearly lay out the benefits the employee can receive. The employee generally no longer can sue the business for unlimited compensation once they file a workers' comp claim. Instead, they will work with you, your insurer and the local workers’ compensation board to document, verify and claim benefits.  

For this reason, workers’ compensation make it more straightforward and cooperative for businesses to address workplace injuries. In fact, it can often save a lot of bad blood between employees and employers. Employees want to feel secure knowing that they have a resource to use in case of incapacitation.  

Just think, one uninsured employee injury might cost the business a significant loss. It might even impact your long-term stability. It’s much better to face the structured claims process of workers’ compensation insurance.  

Sole proprietors, freelancers and other self-employed individuals can also benefit from buying this coverage. Not only can it help you protect yourself if you get hurt, but is can also help you gain more business. Some employers will more likely hire you if you prove you have this coverage yourself. Therefore, don’t hesitate to consider working it in among your business expenses.