Small Business Insurance: Staff

Every small business with at least 3-5 employees needs to consider insurance options for staff. As a small business owner, this means that you will need to allocate some funds for health and workers compensation as part of your staffing expenses. This can be a significant expense for startups and individual business owners, especially those in that are in their initial growth periods. However, the benefits package you offer can have a significant impact on business operations in the long-term.

Workers Compensation

Workers' compensation is one of your business's greatest assets, offering protection from a variety of circumstances related to on-the-job injuries. Not only is it valuable for businesses, but employees an feel safe working in your business environment because they know they will have the appropriate protection and coverage of medical costs if they need it.

On-the-job accidents can be very costly, and employees who are covered with reimbursable medical expenses are much more likely to stay with your company for the long-term. Workers' compensation is required in every state except Texas and New Jersey where it is voluntary. It is generally a part of a benefits package, and is especially important for industrial and mechanical industries where the risk of work-related injuries is generally higher.

Some states require coverage for all workers, while others will only request it for full-timers; the amount of coverage you extend to contractors and part-timers is up to you, but it is a wise choice when there the nature of your industry involves factories, plants, or other industrial processes.

The process of workers' compensation claims is relatively simple. After an injury is filed and reported, the case manager from your insurance company w ill review all of the paperwork and find out if the claim is valid. The injured party will need to show proof of injury, whether this is from medical records, incident reports, and possibly an interview. After review, the insurance provider can reimburse the injured for the appropriate amounts depending on coverage.

Workers compensation protects your business from liability, and can greatly reduce litigation costs and trials.

Health Insurance

Finding the right health insurance plan for your workers is another valuable addition to your benefits plan, and although health insurance costs can be higher, they can be rolled into a package along with workers' compensation. Having an attractive benefits package not only helps to hire and retain strong workers, but you're business will also have the benefit of discounted rates over the long-term, and exclusive packages when you upgrade.

Health plan premiums can be very basic, and you can even organize a payment plan with your workers to pay half the costs. Just remember that any employer contribution is tax-deductible, and you will be offering a very valuable benefit to all employees.

Since risk is a natural part of business operations, you can be proactive by including health and workers compensation insurance plans for your workers. Even a small business that hires less than ten workers should consider health and workers compensation. Lowering the risk of injury needs to be a part of day-to-day practices and protocol, but in the unfortunate circumstances of an accident, everyone will fare far better with the appropriate medical and insurance coverage.