What are the advantages and disadvantages of state mandated workers comp?

As a small business owner, you may or may not have the option to participate in a workers compensation program.  There are a variety of advantages and disadvantages to consider before making the decision to participate – or not participate in the program. If the state where your business is located does not legally require you to participate due to the size of your company, ie. the number of employees who work for you, you may still have the option to participate voluntarily.

Here are some of the advantages:

  • Your company’s liability for injuries to employees that occur on-the-job is limited to those that are allowed under your state’s workers comp system.  This prevents you from being sued for your personal assets; otherwise, you could be sued for everything you own.
  • If an employee is hurt or injured, the type and amount of benefits you have to pay are limited according to what is available under your states’ laws and programs.
  • Costs are predictable, making your financial and disability planning easier.

The disadvantages are:

  • Most states have a state insurance pool.  If your accident record is high, your premiums may be high as well – however, WCCOP is able to provide some of the most cost effective programs on the market through our extensive network.
  • Often with state programs, there are a variety of forms and procedures that must be followed and adhered to, increasing the amount of administrative duties required by your company in order to be compliant. Again, leave the hassle to us while protecting yourself! WCCOP provides full support services eliminating the time and effort requires to maintain the paperwork and leaving you free to run your business.
  • All claims require the same amount of time and effort to properly process.  If it turns out that these claims are rejected, you will have spent time on them needlessly. Again, WCCOP is here to help! Call us today to get the coverage you need without the fuss.
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