Why business owners should offer workers compensation insurance

When we meet with local New Orleans business owners, we often cover a variety of different types of insurance policies they are interested in to protect their business, however one topic that typically isn’t brought up is workers compensation. A lot of business owners tend to think that workers compensation isn’t necessary for their business, but in reality, if you have employees, you should have workers compensation coverage.

Why do we suggest workers compensation? We chatted with Joel Lookingbill, certified CWCP, for the answer. He is a member of the Garcia Insurance team who specializes in commercial business insurance and knows all the ins-and-outs of workers compensation.

According to Joel, here’s what business owners need to know about workers compensation:

#1) Workers compensation isn’t just for workers, it’s meant to protect business owners.


A lot of business owners tend to think workers compensation is solely meant to protect their employees; and if they have a small team, or a team that is typically injury-free, business owners often assume workers compensation is unnecessary.

Two things Joel likes to point out to business owners is that:

  1. workers compensation protects your workers (regardless of how “safely” they operate) and
  2. it also protects business owners. Without workers compensation, a simple injury or emergency trip to the hospital can create huge financial stress for business owners, and in some cases can completely shut a business down.

#2) Even though it protects business owners, many still choose to opt out of workers compensation.


Expense is a common reason why business owners aren’t interested in purchasing workers compensation, however Joel shared that depending on the business class and coverage it’s possible to get proper coverage for under $1,000 per year. People insure their buildings, their trucks, and their equipment, but employees are what makes a business operate successfully.

When business owners neglect to cover their employees, they are neglecting the heartbeat of their company and open themselves up to losing their biggest investment (their company). Also, a lot of people want to work someplace where they are covered. Offering workers compensation is a great recruitment tool for lasting employees.

Always remember that every business, no matter how big or small, will face some sort of risk. Restaurants, electricians, plumbers, tree-trimming companies, insurance agents, doctors -no matter what business or service- workers compensation plays a role in protecting your employees and providing business owners with peace of mind.

Even if a business has only had one claim of $8,000 in the history of their company, when compared to workers compensation costs, that could be around ten years of workers compensation coverage and the cost of the claim would have been significantly cheaper even with a $500 or $1000 deductible.

Are you a business owner? Do you offer workers compensation? We’d love to hear why or why you don’t offer workers compensation for your employees.

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Are you ready to save time, aggravation, and money? The team at Garcia Insurance Services is here and ready to make the process as painless as possible. We look forward to meeting you!

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