Workers’ Compensation for Small Artisan Contractor Businesses – Is It Necessary?

All businesses face certain risks and exposures that might manifest in ways that threaten financial viability and future potential. Even small contracting companies staffed by artisans in their trades must accept that mishaps and on-the-job injuries may inevitably occur. Understanding your obligations and options regarding workers’ compensation insurance should be a top priority to address legal compliance and employee needs.

Who Is Required to Have Workers’ Compensation Insurance?

Workers’ compensation insurance is a legal obligation for many businesses throughout the United States. Without appropriate coverage, your company could face extensive penalties, including fines and even being ordered to shut down operations. Requirements can be less stringent for smaller employers, but certain mandates may still apply. For example, in Georgia, businesses with three or more employees are required to carry workers’ compensation insurance. As such, small artisan contractors run by sole proprietors may be exempt from mandates.

Still, even if employers are not technically required to have workers’ compensation insurance, retaining a policy can be critical to financial security and future prospects. A workers’ compensation claim can make all the difference as small artisan contractors attempt to manage various losses and expenses arising from on-the-job injuries and illnesses. Additionally, clients may be less likely to contract with you and employees may prefer to work elsewhere if you aren’t carrying coverage.

Why Are Policies Important?

Regardless of your formal obligations, workers’ compensation insurance can cast an essential financial safety net, potentially providing funds for the following costs in the wake of workplace incidents:

• Medical bills

• Wage replacement

• Disability benefits

• Vocational rehabilitation expenses

• Death benefits

• Employer legal costs in response to lawsuits

We’re Here to Help

At Volunteer Sales & Marketing DBA Hometown Insurance in Dallas, Georgia, we’re ready to help local artisan contractors understand their workers’ compensation coverage needs and procure an optimal policy. Contact us today to learn more or get a free quote for your business.

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.