We Want To Sue You!

Our top 3 reasons why your business needs to purchase workers compensation insurance.

We hope the title of this blog post got your attention. Employers who fail to purchase workers compensation insurance are setting themselves up for big risk.

Workers compensation insurance is relatively inexpensive. Progressive insurance has an online premium estimator. According to its website, a furniture manufacturing with $500,000 in payroll would only have a premium of $11,824.00 per year in Michigan.

Too many employers attempt to game the system and don’t purchase required workers compensation insurance. Here is why doing the right thing can also be a smart business decision.

1. It’s the law

Michigan law requires private employers with 3 or more employees to buy workers compensation insurance. This is to protect both parties in the event of a work-related accident. Failure to carry workers compensation insurance is a misdemeanor. Penalties include a fine of $1,000 and possible imprisonment up to 6 months. Each day’s failure is a separate offense.

2. You can get sued for negligence

Workers compensation pays wage loss and medical benefits to employees who are hurt on-the-job. In exchange, employers get protection from civil lawsuits even if negligence occurred. This is known as the exclusive remedy provision. Not having workers compensation insurance allows your employees to sue for negligence and seek additional damages.

3. Personal liability

Employers who do not obtain workers compensation insurance are personally liable for benefits. Officers and directors of the corporation might have to pay out-of-pocket. This can cost hundreds of thousands of dollars in medical alone.

To speak with one of our workers compensation lawyers in Michigan, call (855) 221-2667 for a free telephone consultation.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years.  Alex has helped countless people obtain workers compensation benefits and never charges a fee to review a case.

Related Information:

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10/01/2013
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