It is quite common for people to think of workers compensation insurance as something that is offered by large businesses that employ many different people. However, while it is true that only businesses with more than a handful of employees are typically required to carry this type of insurance under the law, this does not mean that smaller businesses cannot also benefit from choosing to purchase a workers compensation insurance policy. In fact, these policies can prove quite beneficial, even if the only person who works for your company is you. That's right, even sole proprietors can benefit from workers compensation insurance.
Protection Against Lost Income
The idea of not being able to work due to an on-the-job injury can be a source of anxiety for anyone. However, this idea is bound to be even scarier for many sole proprietors since their inability to work will inevitably mean that their business is closed until they are able to recover since there are no other employees to do the work for them. This can be a serious problem for sole proprietors who do not have enough savings to carry them through the recovery process without having a way to earn any income. Purchasing workers comp insurance allows sole proprietors to protect themselves from ending up in this position by allowing themselves the ability to file a claim for benefits if they ever become injured on the job and are unable to work.
Protection Against Out-Of-Pocket Medical Costs
One mistake that many sole proprietors make is assuming that their personal medical insurance will cover them if they become injured on the job. Unfortunately, far too many of these individuals don't find out until it's too late that the majority of private health insurance plans actually exclude coverage for any work-related injuries or illnesses, regardless of whether you work for a large corporation or are self-employed. Consequently, these individuals will find themselves stuck paying for their medical costs out of their own pocket. In some cases, an inability to cover these out-of-pocket expenses may also compromise an individual's ability to get the care they require.
Purchasing a workers compensation insurance plan allows sole proprietors to protect themselves against large out-of-pocket medical expenses related to on-the-job injuries. Best of all, since the policy only needs to cover a single employee, these policies can often be purchased at an incredibly low rate.
To learn more about how you can benefit from workers compensation insurance, be sure to reach out to a reputable insurance provider in your local area.