Although operating a business comes with many expenses, getting workers’ compensation is one expense you should never skip. Gantt Agency in Farmville, VA provides this guide in navigating this important coverage.
What is workers’ compensation insurance?
This commercial coverage protects business owners and their staff from the financial liability that could follow after an employee gets injured on the job or becomes ill because of a work-related issue. This coverage covers the medical bills related to the illness or injury and missed income. At Gantt Agency, we urge business owners to get this coverage because it can indemnify them in a lawsuit if the employee sues. As a business owner in Farmville VA, here are the risks that you are exposed to if you don’t have workers’ compensation insurance.
Contractors typically aren’t employees, and this means that they usually assume the liability for injuries they sustain working for you themselves. However, you need to state that you are not responsible for your contractor’s injuries or anyone down the line clearly in the contract that you offer them. The contractor needs to know that they are liable for their injuries. If you fail to do contractual risk transfer, you will be liable for the contractor’s injuries, those of the sub-contractor, and others down the line. This can be financially devastating to your and your business.
Lawsuits, Fines, and Jail Time
If you don’t have worker’s compensation, you can expect your employee to sue you for liability of their medical bills and missed income if they get ill or injured because of working for you. The lawsuit will put a massive burden on you and your business’s operations as you will have to direct some of your income towards paying legal fees. Additionally, the lawsuit can result in massive fines for you and your enterprise, which could cripple its operations. Additionally, you can end up in jail for negligence.
Give Us A Call
Contact Gantt Agency today for the best workers’ compensation insurance deals in Farmville, VA.