How Workers' Compensation Insurance
Protects Small Businesses



Nearly every business faces at least some risk of on-the-job accidents, whether it be carpal tunnel injuries or equipment malfunctions that cause loss of limb or even death. If one of your employees is hurt while working for your business, you could be held responsible for paying related medical expenses as well as the wages he or she would have earned during his or her recovery period.

Without insurance in place, those costs can be prohibitive: in addition to compensating the injured employee, remember, a business often has to pay wages to a replacement employee to perform the duties the injured person is no longer able to carry out.


Most workers’ compensation policies also include something called Employers’ Liability Insurance, which helps pay for your legal costs in the event that you have to defend yourself in court against an employee’s claim of illness or injury.


Those costs, too, are often steep: even if the court finds that your business is not responsible for the illness or injury in question, you will have to pay for your legal defense, which might include attorneys’ fees, court costs, docket costs, witness fees, and more.

Workers’ compensation policies typically offer several coverage options, which might include…

  • Coverage for employees working in other states beyond your normal range of operations.
  • Coverage for certain types of injuries and illnesses for which your state may or may not mandate coverage.
  • Coverage to support the dependents of any employees who suffer a fatal on-the-job injury, as well as coverage for funeral costs.
  • Percentages of reimbursement for lost wages.
  • Various liability limits.


Lumpkin's Insurance & Associates can help you determine which types and what amount of Workers’ Compensation Insurance will provide adequate coverage for your business.