For small business owners in New York, keeping employees happy can be a full-time job. This is especially true when it comes to workers’ compensation benefits, which can be extremely beneficial in the event an on-the-job injury occurs. Here at Cox Padmore Skolnik & Shakarchy LLP, we know the impact failing to implement workers’ comp insurance can have on a business, from increased costs to penalties and fines.
Entrepreneur lists a few of the potential risks facing businesses without workers’ compensation in place. Perhaps the biggest risk are the fines that can be levied against a business for failure to comply with pertinent regulations. For instance, New York employers could potentially face exorbitant fines, as businesses in the state without insurance can be penalized every 10 days at a rate of $2,000. There is also the possibility of employee lawsuits, which can incur mounting legal fees.
In the event of an employee injury, businesses that lack workers’ comp insurance may have to pay for medical expenses. In most cases paying for injuries on a case-by-case basis is far costlier than simply paying the fees associated with an insurance policy. A policy can also provide entrepreneurs peace of mind that they will be covered should an injury occur.
Along with the monetary risks, business owners also face the possibility of employee dissatisfaction when the proper protections are not in place. Employees can feel undervalued by their employer if essential benefits are not afforded. This may lead to workers moving on from your enterprise in search of an employer that offers more comprehensive protections related to injuries incurred at work. If you have questions about your rights and responsibilities as a business owner, please visit our website to learn more about your legal options.