The first reason you need workers’ compensation insurance is obvious. In most states, you’re required to have a policy unless you meet certain requirements for exceptions. For example, Indiana mandates employers with one or more employees to carry coverage. Regulations vary from state to state, but penalties for noncompliance can be substantially high.
However, even if you’re doing business in a state that doesn’t demand it, such as Texas, potential clients might avoid your company due to the perceived higher risk. Additionally, you’re still open to legal action by employees if they’re injured on the job, and your losses in court could add up to much more than if you’d just carried a policy in the first place. Whether or not your state’s regulations insist that you have it, it makes good business sense to include workers’ compensation in your insurance portfolio.
Finding coverage can be a little challenging for small businesses. Insurance carriers can be selective, restricting by geography and niche markets. Beginning your search with a firm specializing in wholesale brokerage is your best bet, as they’ll help you navigate the market around such restrictions to find the ideal policies for your organization. If you’re a very small company or need multi-state coverage, a wholesale brokerage business can also locate policies and options to meet your specific needs.