There are many businesses that need workers' compensation insurance. These policies protect against financial loss due to employee injuries. In a retail setting, it is perhaps one of the most valuable purchases you can make. View this form of business insurance as a critical investment. Here is why it matters so much to your retail location.
The Risks Are High to Retail Business Owners
Some industries seem like high-risk places to work. This includes things like health care businesses and construction companies. Retail is also a high-risk position.
According to the Bureau of Labor Statistics, retail had a high rate of loss in this area. The incident rate for 2015 per 10,000 workers was 105.3 cases. In retail, employees lost 123,770 days off work from injuries. Employees are invaluable to this industry as well. That means losing a day or two from work can amount to thousands of dollars in loss for the company.
Why Retail Jobs Are Dangerous
It may not seem like this type of industry is high risk. However, it often has the fewest employee safety training programs. It also has a large number of injuries such as cuts and lacerations. According to the same report, those risks made up 11 percent of all claims in the retail sector – a total of 13,490. These were enough to send people to get medical help.
How Workers' Compensation Insurance Protects You
As a business owner, you need to minimize financial loss. If an employee suffers an injury at work, your company may be responsible for those losses. Instead of paying for them, your worker's compensation insurance covers the cost. Imagine having to pay for all the cuts, broken arms, and other injuries employees at your retail location have. It could get expensive.
Many states require workers' compensation insurance. If your state does, failure to maintain a policy can be more costly. Be sure to work with your business insurance agent to find out if this is the case. Coverage should be enough to cut any financial risk from your company to an injured worker. This includes for lost time at work, medical bills, and pain and suffering claims.
Workers' compensation insurance is vital in retail. Without it, your company may suffer significant loss. Luckily, the industry’s per incident loss cost is not as high as other industries. That means this insurance may be affordable to you. Going without it may not be wise.
Also Read: Exclusions of General Liability Insurance