You Run Risks With No Workers’ Compensation Insurance

We understand that all businesses look for ways to make a profit. We also know that the rising price of workers’ compensation premiums can put a squeeze on your business. Whether you have a small business or are a larger company, the costs can become more than you can handle and stay afloat.

Because of that, some employers make the choice to cut out their workers’ compensation insurance. They may do so thinking that they have a safe workplace for their employees and that it will never be needed. It may, in fact, not be needed at all, but that is beside the point. There are so many risks involved with not having insurance.

At Sacks Law Group, APC, we understand what companies go through and the decisions that have to be made. We also know that some of these decisions can land a business in hot water with the state of California. If you need a Los Angeles uninsured employers attorney, we are here to help you through the process.

What Are The Issues

This article from Entrepreneur says that, “In the face of such rising employee-benefits costs, some employers are choosing to limit benefits, or forego purchasing workers’ comp insurance altogether.”

It is true. Employers face many costs when it comes to having employees. However, this is part of the overall cost of running a business. While there are certain areas where employers are able to cut costs, California law requires that all businesses with employees have workers’ compensation insurance coverage.

The article goes on to highlight some important reasons why employers need to have coverage aside from it being mandated by law:

• The out-of-pocket costs to cover an employee’s injury will likely be far more than what the employer would have paid in workers’ comp premiums. Without insurance, an employer opens themselves up to personal injury lawsuits that can lead to tremendous settlements.
• General employee morale is at stake. The workplace is tough and if workers think they are in danger of not being covered when they get hurt, their productivity will be lower and employee turnover will likely be high.
• You, as the employer, will feel better knowing that you will not have to pay directly for any employee injury. You will also avoid the stiff penalties for not having workers’ comp insurance (tremendous fines and even jail time).

What We Can Do For You

We know that it can be scary when state authorities send notice that your business is in violation of the law. Make no mistake about it, not having workers’ compensation insurance is against the law. However, this does not mean that your conduct was willful or done out of ill intent. At Sacks Law Group, APC, we want to help you through this so you can get back on your feet and watch your business grow. When you need a Los Angeles uninsured employers attorney, you can contact us for a consultation by clicking here or calling 310-216-7778.