As a business owner, you have to do everything you can to protect your business and your employees. This is why there are different types of insurances to help you, as a business owner, do the best you can by everyone. One of the most important types of insurances you can get is worker’s compensation insurance. Not only is it important but it is a requirement to have in Arizona. Not having worker’s compensation insurance will result in penalties and other consequences.
Honestly, one of the best things you can do for your business is to get worker’s compensation insurance. Getting the appropriate insurance for your business will give you the peace of mind you need to run operations smoothly. Regardless of what happens to your employees, you know that they’re taken care of in whatever situation.
Lets go over why you should have workers compensation insurance and the penalties that can happen if you do not have it.
Failing to Carry Worker's Compensation
As stated above, worker’s compensation insurance is mandatory in most states. Not having worker’s compensations insurance has a $1000 fine in the state of Arizona. While this is not a huge amount of money, there are other penalties that are put in place for worker’s protection.
One of the biggest consequences for running without worker’s comp is immediate closure of operations for the business. Your business will be shut down and will not be able to operate until you have proof of insurance. Another thing to note is that employees can take legal action against an employer who doesn’t have insurance.
Getting worker’s compensation insurance is pretty simple to get. Many insurance providers that offer business insurance most likely have worker’s comp as an option as well. If you live in Arizona and are a business owner, this website can help you decide what is best for your company in terms of worker’s compensation.
The great thing about worker’s compensation insurance is the ability to choose what you want and need. There is a bare requirement of coverage you will need to get when getting worker’s compensation insurance. But if you want to get additional coverage for your employees, you’ll have the flexibility to do that also. This gives you the freedom to meet state requirements while also getting the coverage you want for your employees.
Not having worker’s compensation insurance will cost you more than you think. If an employee gets hurt on the job and it’s not their fault, you can be legally liable for their injuries. These kind of legal cases can get messy, especially if you do not have the proper insurance to cover extra expenses. Not only that, but active lawsuits are not great for business and slow down work operations.
There are many problems with having a civil lawsuit against your company. The worst outcome is when you lose the lawsuit and need to pay out money any damages to the employee. Keep in mind, that any damages can include what the employee paid in medical bills, lost of wages and attorney fees.
Number of Employees
Although this varies from state to state, but in Arizona, if a company has 1 hired employee they must have worker’s compensation insurance. So regardless if they’re a small business or a multi-chain company, all Arizona businesses need worker’s compensation insurance.
Now this might sound troubling to small business owners, as you might not have the expenses to afford additional insurances. But there are many options when in comes to affordable worker’s compensation insurance. Talk to your insurance company and they’ll be able to find the best fit for you. You can also talk about discounts or bundling your insurance to save money.
Workers Compensation Coverage
You want to have enough coverage that you comply with all state regulated laws. But getting the bare minimum that your state requires isn’t always the best option. Getting more overall coverage is beneficial if you’re want a long term business career. Your business is something that you put a lot of work and effort in to keep successful. So giving it the proper resources for it to thrive in whatever situation you’re put in is the best business plan you can have.
The best thing that you can do for you business is to look into insurance bundling. This allows you to get different insurances and lets you save money. That way you can have all of your insurance needs met and in one place. Give yourself a break and make life easier for yourself when it comes to insurance.
The best thing that you can do for your business is to get the right type of insurance. You also want to make sure that you have a great relationship with your insurance provider. There are so many reasons why you could need to contact your insurance contact. You want someone who is going to be there for you when you need them the most.
If you don’t have worker’s compensation insurance, you’ll need to get it asap. The last thing you wan to do is have to completely shut down your business operation. Waiting to get all the requirements is the worst thing you can do for your business. So don’t wait any longer and give us a call to get your business on the right track. We can get you the coverage that you need for your business.
Jail Time and Felony of the Third Degree
Besides having to pay a fine and getting your business shut down, there are some other penalties that can happen. While paying fines and shut down business doesn’t seem like a big issue, there are bigger things to worry about. If not having the proper insurance becomes a reoccurring problem, you will face some bigger penalties in the future.
Believe it or not, but jail time is a possibility for not have worker’s compensation insurance. This is especially true if your business is facing an active civil lawsuit. Ending up with a Class A Misdemeanor will land you in prison for up to one year. The sentencing length varies depending on the degree of the felony. Not only that, the fine for this misdemeanor is anywhere from 2 to 5 thousand dollars.
Workers Comp Insurance
Although it may not seem like it, worker’s compensation insurance is extremely important. Not only does it protect your workers but it also protects your business. When an employee gets hurt, the last thing you want to do is neglect their needed medical attention and prolong their medical leave. Worker’s compensation insurance also helps pay the medical bills for your employee that way it doesn’t come out of pocket.
Needless to say, it is important to have the right insurance for your company. Get an insurance professional if you do not know what you need. Someone who works with insurance will know all the ins and outs of getting insurance.
Do you need to get insurance for your company or business? Be sure to give us a call or send us an email. We would love to talk to you and answer any questions that you have about insurance.
Here at IPA, We Care About You
Our business has over 15 years of insurance experience in the State of Arizona. IPA strives to make your insurance experience as smooth as possible. That is why we offer online and in-person options for you. This allows you to choose what is going to be best for you and your situation.
We want you to feel comfortable about getting insurance. Let us answer any questions you have. We let you choose from over 40 insurance providers. This lets you have control over what matters most to you. We provide both personal and professional insurance options.
Hazard insurance for businesses is a great option that any business owner should look into. Different coverage options can fit within any budget. If you have any questions about hazard insurance or what is best for your business, give us a call.
At IPA, we have insurance specialists that are knowledgeable about all things related to business insurance. Even if you have general questions or do not even know where to start, we can help you out. Let us show you how we can help protect your business. Start today by getting a quote for hazard insurance online.
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