Why Workers’ Comp Insurance is Critical for Small Businesses

One out of four small business owners surveyed in a 2018 poll from Insureon and Mantra admitted that they did not have workers’ compensation insurance. At the same time, 30% of the 900 respondents said that they weren’t certain if they were required to cover their employees in the first place, even though the risks these employees face don’t disappear just because of the business’s size.

For one, the resources that a small business operation has to keep its employees safe can pale in comparison to larger organizations.

“If you have 80 employees and you’re a contractor, you’re large enough to implement risk management procedures, loss control, and claims, and chances are that your employee turnover is lower,” said Todd Pollock (pictured), senior vice president of workers’ compensation at Worldwide Facilities, which launched its workers’ compensation division in 2018. “If you own a restaurant and your turnover is 25%, and there are 10 or 12 employees, you’re going to look at that exposure a lot differently than you would a larger account.”

The resources that a larger company has can range from more oversight of employees – for example, a manager that oversees a group of 15 employees and can keep an eye on their activities, quickly identifying when an employee is acting unsafely – as well as the time and money to devote towards consistent training programs. Meanwhile, a small business owner could be juggling a variety of projects, while also being the head of all the departments in their company.

“Let’s say you have a landscaping operation where there are 10 people. The person that owns that business is running the business, acquiring the customers, and, in most cases, wearing many hats,” said Pollock, adding that on the other hand, “If you have a landscaper that has 100 employees, you probably have a full-time staff that helps you with operating the business, and you’re not stretched so thin. You have more time to spend on important tasks, like hiring the right people.”

Besides helping find coverage for restaurants, landscapers, and contractors, other examples of exposures in the small business arena that Worldwide Facilities can write include auto repair shops, colleges and school, day cares, hotels and motels, janitorial operations, retailers and wholesalers, sand and gravel hauling companies, as well as social services. The workers’ comp division boasts hundreds of class codes, low minimum premiums, competitive pricing, flexible payments options, and fast turnaround, while also being open to accepting new ventures.

While Worldwide Facilities has expertise in small business exposures, that’s not the only area it specializes in.

“We write accounts of all sizes in all exposures. We can write ‘mom and pop’ operations, we can write a restaurant with two employees, we can write a contractor that has one employee, or we can write a contractor that has 500 employees,” said Pollock.

With its carrier relationships in one hand and diverse expertise in the other, Worldwide Facilities brings high-quality service to exposures across the board.


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