Workers Compensation Coverage: The TKO For Your Business
Workers Compensation Law
Every state in America has laws that spell out whether we have to buy workers compensation coverage. In some states the law requires coverage with as few as ONE employee, and YOU are counted as the one employee in most cases, unless you file with the state to exempt yourself. Most states even count part-time employees, and the only state to make purchasing workers compensation optional is Texas.
A Cautionary Tale: Work Comp Police
Recently, I watched a 32-year-old martial arts instructor teaching a full rotation, head level roundhouse kick. He was teaching this kick at the start of the first class of the day. He had spent the better part of afternoon driving, picking up students from school for their after school program, so he had not yet to warmed up his muscles or worked out. Due to his stiff muscles he tore his hamstring.
A hamstring tear can take up to 3 months heal, and he still has to eat and pay rent while healing. During his 6-week check up at his doctor he mentioned how the injury occurred and the doctor immediately change treatment plan to a workers compensation track. This is state law!
How? How is this a LAW? How can he not use his work provided health insurance? As it turns out any injury that happens at work must be handled through workers compensation coverage. There are many insurance reasons for this laws, but the only thing that matters to your business is if you don’t have workers comp coverage you will be personally responsible for all the injured employees medical coverage and lost income.
Workers Comp and Martial Arts Businesses
Workers compensation coverage can be difficult to find for martial arts studios. The workers comp industry is still quite scared of ours, as they think we are all still the kind of head banging gyms from the 1970’s. While there are still gym like that around, we now have so many more family friendly studios.
Workers comp coverage can also be expensive, especially for those who are still building their studios business. Budgeting is everything, as is making sure you have quality benefits to attract the best employees. As mundane as it is, as you are budgeting and deciding on benefits to offer to your employees it is important to keep in mind the laws regulating insurance coverage and benefit requirements.
Often if you have a workers comp claim, but no workers comp coverage you will find it impossible to purchase coverage until you’ve already had it. What? How does that make sense? Well, logically it doesn’t, but insurance companies often won’t take you until you prove you can stay covered. If this is the case, you end up in your state coverage fund. Some state funds make it tough to buy coverage, and this can cause even more problems for you as a business owner.
