There are many cases where securing workers compensation coverage is not possible for several reasons, but that does not release you from compliance. Alternative workers compensation coverage may be the solution that you have been searching for. When you cannot secure a typical policy, staying compliant with these stringent regulations may require that you think outside the box.
What Happens If You Do Not Carry Any Coverage?
Each state has different penalties in place for employers that do not carry workers compensation insurance. Some of the penalties include:
- Fines
- High pay outs to employees
- In extreme cases criminal charges
When you do not have coverage with an alternative in place you are risking your very livelihood. The government has very strict guidelines when it comes to protecting workers and takes the lack of coverage very seriously. While the workers compensation program has not changed much over the last century since it was instituted the expectation is that as an employer you will follow the rules anyway.
You risk paying heavy fines, and being sued by injured employees can literally cost you your business. In extreme cases with very serious injuries there can be criminal charges filed against you. It is a very serious situation that has to be paid close attention.
The Alternatives
You may be able to work within the system and find alternatives that will ensure your company is compliant. Of course, the alternatives are rarely discussed unless you are talking to the right people that have experience with this matter. Most advisors are not aware that there even are alternative options. If you want to discuss your options with a firm that can help, consider Account First.
