Myths about Workers Comp Insurance
Posted on: October 2, 2014 by Care Providers Insurance
Common Myths about Workers Comp Insurance for Nonprofits
When it comes to nonprofits, there is not much that is more important than saving money. Unlike their for-profit counterparts, nonprofits do not have an unlimited amount of funds, meaning they have to budget when appropriate. This starts with getting the right type of insurance for nonprofits, and knowing what policies pertain to them. While many nonprofits are aware of their need for general liability, property insurance, etc., not all nonprofits realize that they have to have workers compensation insurance coverage as well.
While workers compensation plans differ between jurisdictions, it is required for most states that any employer with more than one employee obtains this coverage. One of the most common myths about workers comp insurance for nonprofits is that this isn’t necessary. Even if your client’s area does not require it, having a workers comp policy in place is a good idea anyway, as it helps to cover the costs of medical expenses and lost wages for employees suffering job related injuries. These are costs and a nonprofit may not be able to sustain, given that they will likely have to replace the employee temporarily, which means paying that employee as well.
Another common myth is that employees won’t sue. In the nonprofit industry, the people who are employed by these companies are often not expected to engage in frivolous lawsuits. However, employees without workers compensation coverage may feel like they need to sue simply to pay their medical bills. The nonprofit may be required to pay judgments for pain and suffering, defense costs, and other legal fees that may be unavailable in their funds.
One final and very common myth about workers comp is that employers don’t need it because they provide a safe workplace and their employees will never get injured. However, even in the safest workplace mistakes can happen that result in an injury. Even a minor injury can cause major damages if a company isn’t prepared.
Understanding the importance of Workers Comp Insurance for Nonprofits is essential for your clients, as well as for you. At Care Providers, we are committed to helping you place coverage for your nonprofit clients. Our mission is to provide coverages tailored to meet the unique needs of this market segment. Please contact us today to learn more at 1-800-970-9978.
Posted in: Workers Compensation