Does My Business Really Need Workers Comp Insurance?

 Owning small business is a big challenge as you are constantly trying to stretch out the possibilities of being profitable. Many wonder if they can do so by cutting off their workers’ compensation insurance. It might sound like the easiest and quickest way of saving money but the consequences of such a crime can cost you a fortune. The latter issue is especially well known in the home improvement industry. The bad news for you contractors is that you will need WC insurance for your workers, the good news, is that there are companies who specialize in making workers compensation insurance affordable for employers.

It is a legal obligation for employers to provide workers’ compensation insurance to their employees and themselves. The workers get their health insurance covered and the company does not get involved in legal liabilities of injuries at the workplace.  

The NY State Worker’s Compensation Board won’t spare a dime in coming after you if they find out you are cheating the system. They may reach out to you every so often to provide documentation and valid proof of your workers’ compensation insurance. The Workers’ compensation commission has put various charges and punishments under different sections of the law for not fulfilling the compliance policy. By not providing workers’ compensation coverage you might improve your bottom line for the time being but you are also risking major penalties and probable business closure in the future. Non compliance is actually a criminal offense in most states and the fines one must pay astronomic.

Even providing wrong information about the number of workers or insurance needs sounds like a fascinating way of skimping on worker’s compensation but sooner or later the state audits will uncover you.  

If you fail to deliver workplace and health insurance to the workers of your corporation you will be held liable for any kind of work place injury, hospital charges & all other related expenses the employees incur. Your fine will range depending on the severity of case. Moreover, you can be sued by your employees for not covering their health and safety costs. Your negligence can cost you disrespect, loss and a poor reputation in world of business.

The good news for New Yorkers is that there are established Workers Compensation audit & recovery firms that can help you understand everything you need to know about insuring your employees in a legal yet affordable manner.

Shulman & Hill Workers Compensation Firm 26 Court Street #2100 Brooklyn, NY 11242 (718) 852-4700

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