Skip Navigation
- Close Locations
My Location

Locations Near You


50 W. Lancaster Ave., Ardmore, PA 19003 610-896-6435

ATM Safety Deposit Boxes Coin Machine  Bank Branch


5000 Pennell Road, Aston, PA 19014 610-364-7800

ATM Safety Deposit Boxes  Bank Branch


135 East City Ave., Bala Cynwyd, PA 19004 610-664-6293

ATM Safety Deposit Boxes  Bank Branch


1436 Lancaster Avenue, Berwyn, PA 19312 610-581-4774

Wealth Office


1436 Lancaster Avenue, Berwyn, PA 19312 610-527-1881

Insurance Office

Show More
Find Locations 610-525-1700

Why Workers’ Comp Insurance is Important for Small Businesses

Insurance Insights

In the last 20 years, individual states in the country began implementing workers’ compensation laws that require companies to provide medical expense reimbursements and other benefits to employees who fall victim to a workplace injury or illness. From major corporations to small businesses, workers’ compensation has become a regular component of benefits packages for employees.

But recently, workers’ compensation has been put on the backburner, especially in the small business community. Many small businesses in the state opted to do away with workers’ compensation, even with law requirements. This alarming trend is a reminder that coverage should be continued, even for small businesses who feel they may not be able to afford it. Here are some reasons why workers’ compensation is important, no matter the size of business.

It is Required by Most States

Because workers’ compensation requirements can differ by state, it’s important for business owners to understand what’s expected of them based on their location.

Some states, such as Texas, are classified as opt-out states, in which they can choose to not have workers’ compensation if they don’t need it. But the majority of states do require some level of coverage.

Workers’ Compensation Helps Employees

No matter the work environment and the safety level therein, having workers’ compensation is a safety net for every workplace. Libraries may seem like a safe place compared to a warehouse or worksite, for example, but there could still be a freak accident that takes place. And what about illnesses as a result of the workplace? Someone may have an asthma attack that sends them to the hospital, meaning that having workers’ compensation in place would be the protection they would need for medical and wage replacement benefits.

It Protects Your Business

Workers’ compensation helps businesses avoid the cost of employee’s medical expenses and wages lost due to an illness or injury. Without workers’ compensation set, the medical expenses related to a single claim could cause major harm to a business’s financial stake, especially small businesses that already run a small budget.

The right insurance provider can help to provide access to loss control services that can help cut down on costly claims and keep premiums to a manageable amount.

How Are Premiums Set?

It’s also good to know how premiums are set for workers’ compensation insurance. Premiums are tallied based on the industry classification of a business. Premiums for companies that operate in riskier industries, such as construction and factory work, may end up being higher compared to less dangerous environments.

Are you interested in learning more about our insurance products?

Schedule a Call Today!