6 Common Myths About Workers’ Compensation

It can be tempting to imagine that your business doesn’t need workers’ compensation insurance. But if you have people working for you, it’s your job to make sure that their workplace is safe and that they’re covered if something goes wrong. No matter how safe you believe you’ve made it, work-related injuries can happen. You need to know workers’ compensation facts, including workers compensation coverage and what it includes.

Here are six myths about workers’ comp coverage — and why you should be sure to protect yourself and your employees.

1. My Employees Will Never Get Injured, So I Don’t Need Workers’ Compensation Coverage 

Even in the safest workplace on the planet, an injury or illness can happen — and it’s likely you won’t realize it’s happening until it’s too late. Work-related injuries are very common, and workers’ compensation laws vary from state to state. Being properly covered for your business and the laws of your region is vitally important. 

2. My Employees Are Less Likely to Get Injured Than Workers in Other Types Of Businesses

It doesn’t matter if you employ field workers, warehouse workers or employees at desks — injuries can happen, and they often do. Here are the top 10 private industry occupations with the largest number of injuries and illnesses in 2023:

1. Health care and social assistance
2. Manufacturing
3. Retail trade
4. Transportation and warehousing
5. Accommodation and food service
6. Construction
7. Wholesale trade
8. Administrative and waste service
9. Arts, entertainment and recreation 
10. Agriculture, forestry, fishing and hunting

Even if your industry isn’t listed, injuries and illnesses can still occur. Employees that work inside, outside, on the road or in an office can get injured and become ill. Having your workers’ compensation policy will help alleviate any worry about what happens if they do.

3. If an Employee Is Injured, I’ll Be Able to Self-Insure

Many states require any business with employees to carry workers’ compensation coverage. Not being properly covered can result in fines. Compare the cost of a policy with the potential cost of just one lawsuit and you’ll see that it makes sense to be proactive and get proper coverage. Between 2016 and 2018, the average workers’ compensation claim at Farm Bureau Financial Services cost $21,100. When you add claims in which the employee lost time from work, the average cost increases to just over $60,000.

4. I’m Only Responsible for Accidents if They’re Determined to Be My Fault

Workers’ compensation is a “no-fault” coverage. That means that if the injury or illness occurs at work, it is very likely to be covered. (This is different from employers liability insurance, which requires negligence on the part of the employer for coverage to apply.)

5. Benefits Only Last for a Certain Amount of Time

In fact, the length of workers’ compensation benefits can vary by state. There are different types of disability benefits, each with different lengths of coverage:

• Temporary partial disability
• Temporary total disability
• Permanent partial disability
• Permanent total disability
• Vocational rehabilitation
• Death benefits

6. I Have an Agriculture Operation, So I Don’t Need Workers’ Compensation

Many farmers believe they qualify for an ag exemption, which can vary by state. The problem in many cases is that the farmer only discovers during a lawsuit that the court did not agree they were exempt. This can be due to the activity an employee was doing at the time of the injury, the legal make-up of the operation or other issues. This kind of mistake can be very costly; don’t go without coverage.

Protect Your Business and Your Employees

Depending on the injury, you could be paying medical expenses and lost wages for the injured worker’s lifetime. Having workers’ compensation insurance will help you protect your employees (and yourself) without emptying your pockets or having to shut down your business.

Reach out to your Farm Bureau agent for more information on workers’ compensation coverage and protecting your business and employees.