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No Worker’s Comp? Big Problem

No Worker’s Comp Big ProblemAs premium rates soar for Connecticut Workers’ Comp benefits, some companies are choosing to limit the benefits or bypass the coverage altogether. While employers may be saving money in the interim, the following considerations and risks should be weighed.

Accountability Laws- By law, employers are required to provide Workers’ Compensation for their employees. If they fail to do so, or misclassify their workers, additional fees and litigation could potentially ensue.

Out-of-Pocket Costs- Although premium rates jumped $1.1 billion from last year according to the San Francisco Business Times, not having these benefits can be even more costly. Another report, conducted by the U.S. Department of Labor, stated that businesses spend about $170 billion a year on occupational injury costs. To put it into perspective, Workers’ Comp costs range from 88 cents to $3.48 per $100, dependent on the state. Many employers are also granted the option to pay as the year progresses rather than be presented with a large bill at the end of the year.

Lower Employee Morale- Benefits undoubtedly contribute to employee engagement and appreciation. However, the Bureau of Labor Statistics states that a little more than half of employees who work for small companies have medical benefits. As these necessities lead to improved employee satisfaction and retention, medical benefits should be considered.

Peace of Mind- Constantly worrying about an employee injuring themselves on the job can lead to added stress for the employer. Further, federal fees may apply if the employer’s lack of benefits is recognized. These fines, some resulting in a $2,000 penalty per 10 days of noncompliance according to Entrepreneur, can hinder a company’s financials.

At Associated Specialty Insurance Agency (ASIA), we are dedicated to your Workers’ Comp needs. We understand the risky implications of not providing these necessary benefits, and seek to cover your business at a competitive rate throughout our target states of New Jersey, Pennsylvania, New York, Connecticut, Delaware, Maryland, Virginia, North Carolina and Florida. For more information on our products and services and how to properly protect your business, we invite you to contact our specialists today at (866) 679-7457.

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