The Benefits of a Workers Compensation Policy – and Costs of Going Without

May 26, 2020 • Previsor

Not having workers compensation insurance is a lot like having workplace injuries: nobody wins. A work comp policy protects both employers and employees. One workplace injury can change the future for the employee and your business. Need proof? Here’s how an unsafe workplace and no work comp insurance impacted one business.

One workplace injury can change the future for the employee and your business. Tweet this. >


In an investigation, the Missouri Department of Labor’s Fraud and Noncompliance Unit determined that the employer let their work comp coverage lapse and never reinstated the policy. During the employer’s time without coverage, two of their employees were injured on the job.

The incident

The two employees were injured while erecting grain bins. The crane operator was lowering the stairwells into the grain bin. Unfortunately, the team failed to have spotters on the ground with a guide wire. Then, the cable broke from the crane, dropping a section of the stairwell on two employees. One employee fell approximately 30 feet to the ground and the other fell about 20 feet. A medical team air-lifted the employees to a facility for care. Both suffered permanent injuries. The life-altering injuries hit especially close to home for the employer as one of the injured employees was also their son. Medical costs for one of the injured employees exceeded $750,000 and $500,000 for the other.

Farmer works on tablet in a field by silos.

Dollars and cents

When a business doesn’t have work comp coverage, who pays the bills? For example, in Missouri, the Second Injury Fund covers the work comp related expenses incurred by the injured worker. In most cases, the employer is responsible for the injured worker’s medical expenses. Often, the employer is sued by the injured worker and/or the Attorney General to recover the workers compensation, legal fees and damages costs.

Benefits of workers compensation

State laws require most employers to have work comp insurance. The specifics of who needs coverage vary by state. Even if the law doesn’t require your business to have a policy, the benefits of workers compensation are worth the cost. A work comp policy lets you run your business with confidence. By putting safety measures in place and having the required coverage, you’re protecting your employees and your business.

Work comp is an important decision for your business. Learn more in this post, Choosing a Workers Compensation Company: 6 Things to Look For. >

May 26, 2020
Share this article