Issues that Small Businesses Face with Workers Compensation Insurance

Here are some of the common problems that small businesses face when it comes to their workers compensation insurance.

Running a small business opens you up to a considerable number of difficulties.  Many of the challenges that you face are related to your workers compensation insuranceHere are some of the workers comp issues that small businesses commonly face.

Financial Concerns

Small businesses typically do not have a ton of extra capital that they can play around with.  Naturally, this leaves business owners wary about overspending in unnecessary places.  While workers compensation does add to your overhead costs, it’s important to understand that this coverage is not necessarily expensive.  It is only when you experience onsite injuries and other claim events that your premiums begin to increase.  To keep your workers compensation costs down, you should offer comprehensive health and safety training, conduct regular workplace safety inspections, and establish risk mitigation programs at your business.

Coverage Limitations

Many business owners misunderstand what their workers compensation insurance covers.  Workers compensation insurance is designed to cover employee injuries or illnesses that arise from onsite accidents or the workplace environment.  However, there are limitations to this coverage.  Common limitations include the following:

  • Contractor and subcontractor injuries and illnesses
  • Injuries occurring off the job site
  • Injuries that are self-inflicted or caused by the employee’s own negligence, neglect, or drug/alcohol use

These are some of the challenges that small businesses face when it comes to their workers compensation insurance. Do you have additional questions regarding workers comp coverage for your clients?  If so, then contact the experts at PMC Insurance Group.  We are ready to assist you with all your commercial coverage needs today.

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