Workers’ Compensation Insurance is designed to cover all of the medical bills of a worker who is injured on the job. It also reimburses the employee for their loss of wages if they cannot work as a result of the injury. In Michigan, the owners of a company can either provide themselves with work comp coverage, or they can exclude themselves to help reduce their overall Worker’s Compensation Insurance costs. Many owners exclude themselves, but do they know that there may be other ways to cover their loss of wages due to an injury? Usually not; the decision is simply made to self insure the risk. When deciding how to handle a risk, such as an on-the-job injury, The Dearborn Agency recommends obtaining costs for all forms of coverage. By doing this you will be able to make an informed decision on whether self insuring or purchasing insurance is the most economical and best way to handle the risk.
If you’re a business owner excluding yourself from Worker’s Compensation, obtain quotes for work comp, disability insurance, and life insurance with a disability rider. Analyzing all of the costs and benefits will assist in making the very best decision for yourself and your business.
