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If you own a small business, or are about to start a small business, you are probably in the process of determining the kind of coverages your business needs. Among weighing the costs and benefits of different policies, you most likely will come across workers compensation insurance. Workers compensation insurance is one of the most important insurance policies for businesses with employees. At RPA, we can help you determine which coverages will be most beneficial for your specific restaurant business. Below are the benefits of workers compensation insurance.
1. It Shows You Care About Your Employees
By providing workers compensation insurance, you are taking a responsible step as a business owner by ensuring your employees are taken care of. In the event that an employee gets injured or gets ill while on the job – whether it is due to negligence or not – workers compensation will kick in and pay them for any lost wages they sustain due to work they have to miss, as well as applicable medical bills. In the rare and unfortunate event that an employee dies due to an accident in the workplace, workers compensation will pay out benefits to a surviving spouse or family member. Providing workers compensation insurance shows you care about your employees and provides incentive for them to get better and get back to work.
2. It Offers Protection for Your Business
Workers compensation insurance is mutually beneficial. If an employee gets injured or sick on the job, he or she is entitled to sue your business. However, if you offer workers compensation insurance, the employee is no longer entitled to take legal action. This saves your business a large amount of money and distress in the future, as the cost of defending yourself in court and settlement fees can be enough to put you out of business.
3. Workers Compensation Coverage is Usually Required by Law
In most states, though not all, workers compensation insurance is required by law. This means as an employer, you are legally required to provide workers compensation insurance for your employees. This is not necessarily a benefit to workers compensation insurance – it is just important to note when determining your coverage needs! Make sure to check your state’s laws before making any final decisions.
4. It Encourages Safer Business Practices
At RPA, we think one of the greatest benefits of workers compensation coverage is that it actually encourages safer business practices. Many workers compensation programs reward companies with discounts when there is a low occurrence of claims. This is a huge incentive for many businesses looking to improve working conditions that reduce injuries and illnesses. Whether that means implementing policies for workplace safety, introducing higher training standards on safety and food handling or other methods for keeping each other safe, all of the above can reduce workers compensation claims. This will save your business money on deductibles, and keep everyone on your staff safe and healthy.
Contact RPA Today to Secure Workers Compensation Coverage
If you are about to open a small business, or currently have employees and are reevaluating your coverage options, be sure to contact RPA. As the experts in restaurant insurance, we understand the nuances of owning a restaurant. We will help you secure the right level of coverage for the ultimate value. Our goal is to get your business the coverage it needs, without overpaying for unnecessary policies. We can’t wait to learn more about your business.