3 Reasons Why Sole Proprietors Should Carry Workers' Compensation Insurance Coverage
If you are like many sole proprietors, there is a good chance that you never even considered the need to purchase a workers' compensation insurance policy. After all, these insurance policies are not required by law for most companies unless you have at least a handful of employees. However, just because the law does not mandate you to carry workers' compensation insurance coverage does not mean that you cannot or should not purchase it. In fact, there are several reasons why all sole proprietors should purchase workers' comp coverage. Continue reading to learn more about three of these reasons.
Make Sure Your Medical Expenses Will Be Covered
Having personal medical insurance may not help you if you are injured while performing your job duties because most private medical insurance policies exclude coverage for any expenses related to an on-the-job injury. These exclusions apply even if you are a sole proprietor. Choosing to purchase a workers' compensation insurance policy allows you to make sure that all of these costs are covered by insurance rather than needing to be paid out of your own pocket.
Protect Your Financial Stability
One of the primary drawbacks of being a sole proprietor is that there is no one else available to pick up the slack if you were to become injured on the job. If your ability to work becomes compromised, you can quickly find yourself without any income until you are well enough to return to work. If you do not have workers' compensation insurance, you can go weeks or even months without any money coming in if you suffer an on-the-job accident. Purchasing this type of insurance coverage will allow you to keep money flowing during this recovery process and ultimately protect your financial well-being.
Maintain A Professional Image
Maintaining a professional image is an important part of obtaining success in any industry no matter how big or small your company may be. Part of achieving this task is the ability to demonstrate to potential customers that your business is properly licensed and insured. This is especially important if you will be providing any services on the customer's property since a failure to carry proper insurance coverage can leave your customer personally liable if you were to get injured on their property. Your decision to purchase workers' compensation coverage allows you to protect your customers from this type of liability and truly demonstrate that you are a professional that should be taken seriously within your chosen profession.