Workers compensation insurance seems to have the stigma of a double-edged sword.
With both favorable and unfavorable consequences, both employers and employees need workers comp as a benefit and protection.
To help you share the pros instead of the cons, let’s demystify some of the common myths surrounding workers comp insurance and why your employer clients need it now more than ever.
Common Workers Compensation Insurance Myths
ONE: Small businesses with a small staff don’t need workers comp. False. No matter what size business, workers comp is one of the primary ways to protect your business. The majority of businesses are required by law to have workers comp insurance. If an employee gets injured on the job and sues, the business owner could lose everything through a lawsuit. Workers comp is designed to protect businesses of all sizes.
TWO: It is cheaper to pay for injuries out of pocket than to pay for workers comp insurance. Untrue. Medical expenses are just the beginning of an employer’s obligations when an employee gets injured. Businesses need to plan on covering lost wages, additional damages, and even the cost of temporary staffing coverage.
THREE: Our employees would never sue us. False. We live in a me-focused society. Employers cannot count on loyalty in relationships when someone else is injured working on the job. A work-related injury can incur enormous professional and personal expenses that might force your most trusted employee to file a lawsuit. Getting workers comp ensures you don’t have to test the strength of relationships.
FOUR: Workers compensation claims improve over time. Untrue. Injuries that require medical treatment typically increase medical costs over time. The best time to settle workers comp claims with employees is immediately after the incident. Doing so can help employers save significantly.
FIVE: Your employees offer professional services, so they don’t need workers comp. False. A simple slip on the floor or in the parking lot makes the business owner liable. Accidents can happen anywhere at any time to anyone. If it happens when team members are working on the job – no matter what they are going – the company is responsible.
SIX: Employers don’t have to do anything more than pay a workers comp claim. Untrue. The responsibility of the employer isn’t done until the employee is back at work productively. Once a claim is filed an employer should implement their return-to-work program that ensures consistent communication, return-to-work guidelines, and monitors productivity. This means an employer should create a return-to-work policy, which insurance brokers and agents can help define before an accident happens.
What Insurance Agents & Brokers Should Do
Share these myths with your employer clients and help them understand that they need workers comp insurance for the well being of their company and employees.
Remind your clients that any company that hires employees needs workers comp to provide coverage for the unexpected.
Remember that the more you invest time in educating prospective clients about the benefits for workers comp insurance, the more inclined they will be to do business with you when they need the services and products you offer.
Do you have hard-to-place clients and high X-mod account? Syndicated Insurance Resources can help you. In fact, we are well known for finding solutions for almost everyone. Email us or submit to us through our free broker gateway today.