Workers’ Compensation Aggravation

Why Biting the Bullet and Not Securing Comp, could Compromise your Entire Business.

Employers are often looking for ways to cut costs and improve their bottom line. However, one area where they shouldn’t skimp is workers’ compensation coverage.

Some business owners may be tempted to think of workers’ comp insurance as an unnecessary expense, especially if none of their employees have experienced a serious work-related injury. But business owners who don’t carry workers’ comp coverage risk facing fines, or even jail time, depending on the laws in their state.

In The Mitten, it’s Mandatory

There are a few differences between Michigan and other states when it comes to workers’ compensation insurance. Michigan law requires that an employer must be able to prove it can pay benefits in the event that a worker is injured on the job. There are a variety of questions to ask when a business evaluates its workers’ compensation needs; it’s important to understand what workers’ comp covers and when it is mandatory.

An employer must carry workers’ compensation insurance in Michigan if:

  • It employed one or more people for 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks (or one year).
  • It is a private employer that regularly employs three or more people at a time.
  • It is an agricultural employer that employs three or more employees for 35 hours or more per week for 13 or more consecutive weeks.
  • It is a household that employs domestic servants for 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.
  • It is a public employer.

Don’t Gamble. Get Covered.

It’s clear that the cons greatly outweigh the pros when it comes to deciding on whether or not you should pay for workers’ compensation coverage. Unfortunately, many small businesses still find it tempting to “fly under the radar” and forgo securing coverage to save money and time.

That is why smart employers tend to lean towards securing coverage through a Professional Employer Organization (PEO). By teaming up with a PEO to provide a turn-key solution for a small business’s back-office, the employer can now refocus on what they do best: growing their business!

Key Benefits of Securing Workers’ Comp coverage through ChampionPEO:

  • Pay-as-you-go for coverage throughout the year instead of all at once.
  • Completely administered for you.
  • ChampionPEO shops the markets for you each year.
  • End-of-year audits are done for you.
  • Claim investigations and legal representation
  • Return-to-Work Programs