Do You Need Workers’ Compensation Insurance If You Have a Small Staff? 

Even for small businesses, workers’ compensation insurance is often an essential investment. In fact, many organizations may be beholden to the same laws as larger corporate enterprises despite employing only a handful of workers. This makes a workers’ compensation insurance policy crucial not only for helping employees maintain or recover their health and wellness but also for legal compliance. Silicon Valley Risk & Insurance Services can offer guidance.

Who is Required to Have Workers’ Compensation Insurance?

Workers’ compensation insurance laws and requirements may vary depending on your business’s unique circumstances, including by sector, operational details and location. Still, many mandates apply to most employers. For example, in California, anyone who employs someone else must carry workers’ compensation coverage. You could face significant fines and imprisonment if your business fails to fulfill these obligations. Certain exemptions, such as for sole proprietors, may apply. A qualified insurance agent can help you assess your circumstances and identify relevant legal requirements.

Why is Coverage Important?

Aside from complying with legal requirements, your business should also prioritize workers’ compensation insurance for several other key reasons, including the following:

• Employee well-being—Without workers’ compensation coverage, your employees could lack the ability to receive the care they need following work-related injuries and illnesses, hindering their recoveries and potentially leaving them to struggle.

• Reputational stability—Regardless of legal mandates, employers who lack workers’ compensation insurance may fall under public scrutiny. Following on-the-job injuries and illnesses, affected employees may have little recourse but to sue your business, potentially tarnishing your business’s good name and impacting future attraction and retention efforts.

• Future prospects—Many clients and customers may refuse to do business with you if you aren’t carrying workers’ compensation insurance. As such, lacking coverage could severely hinder your growth and prosperity.

We’re Here to Help

At Silicon Valley Risk & Insurance Services, we can help businesses in San Mateo understand their workers’ compensation obligations and secure suitable insurance. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.