Here are some of the dangers of not having the right workers comp insurance for your business.
Currently, every state in the U.S. (except Texas) requires businesses to carry some form of workers compensation insurance. Regardless of size, scope, or industry, all businesses need to have this essential form of coverage in place. But what happens if you choose not to secure workers comp insurance? Here are some of the consequences that your business could face.
As mentioned above, almost every state mandates that business owners carry some minimum amount of workers comp coverage. While workers comp laws differ depending on which state your business operates out of, failing to secure legal minimums will have consequences. For instance, in some states, failure to carry workers compensation insurance is considered a felony and could result in jail time. Other states will issue significant fines, ranging from $1,000 to over $10,000.
In addition to these legal consequences, businesses that refuse to offer workers the right insurance are subject to expensive and damaging lawsuits. For instance, employees could file lawsuits against your company individually or in a class-action lawsuit. As a major legal battle can easily cost hundreds of thousands of dollars in legal fees and settlement payments, dealing with a workers compensation lawsuit can spell the end for your business.
These are some of the consequences of failing to carry the right workers compensation insurance. Are you looking to secure the right coverages for your business? If so, then contact the experts at PMC Insurance Group. We are ready to get you the coverage that you need today.