Before 2020, the idea of running a small business from home was exciting and for many, a dream for the future. But then 2020 hit and a lot of people found themselves in a position where taking the risk to earn their own income was a matter of survival.
What this also means is that South Africa is the proud host of a heap of newly-established, small, home-based businesses.
Regardless of how you got your start, though, and no matter what kind of business you’re in, and how big it is, the fact of the matter is that the same vulnerabilities exist for you as they do for entrepreneurs who are more established.
While it’s likely to be on your radar to explore business insurance as your enterprise takes shape and grows, there may be a question mark hovering over the issue of workers’ compensation… And whether your small business needs this kind of cover.
Here’s a brief look at workers’ compensation and what it means to small businesses.
What Is Workers’ Compensation Insurance
In South Africa, this type of insurance gives you cover for the costs related to employee injury, illness, or disability sustained at work. Basically, it gives your employees access to medical benefits and provides you with cover in case 1 of your employees is hurt, becomes ill or disabled, or passes away while on duty.
Does Your Business Need Workers’ Compensation Insurance
As a small business owner, you’re probably feeling like you’re coughing up more than your fair share. But take a moment to think about the fact that as the boss, you’re responsible for the safety of your staff during working hours. The buck stops with you if your employees have an accident or get sick at work.
So, while workers’ compensation insurance might seem like an unnecessary expense, this type of cover can save your business from going under as a result of some pricey mishaps.
Strong reasons for getting workers’ compensation cover:
- Accidents happen, and that’s the truth.
- A workers’ compensation insurance policy can offset financial setbacks.
- This cover can safeguard your business against the costs of employee lawsuits or claims.
- Employees care if their employers care, and knowing that you’re looking out for their wellbeing will attract and retain top talent.
- It encourages safety and wellness awareness in your business, mitigating the risks of work-related illness or injury.
Do You Need Workers’ Compensation If You Don’t Have Employees
The reality is that accidents are common in the workplace. It makes sense that if you have employees, you should have workers’ compensation insurance to safeguard your business.
That’s why we recommend that you register with the Government’s Workmen’s Compensation Fund. How it works is that you, as the employer, pay the annual workers’ compensation fees.
At the end of the day, this kind of cover isn’t just to prevent you from the financial setbacks that can endanger your business’ existence. The hands and minds that labour towards your business’ success also need and deserve protection, and in our opinion, looking after your employee’s or employees’ safety while simultaneously protecting your business is just good business.
While we’re talking about protecting your small, home-based business, it’s worth mentioning that a customised business insurance policy that protects your specific business against the risks more likely to throw your strategy off course is also a good idea. The kind of cover that protects you, your business, and your home from damages and liability.
If you’re looking for an expert business insurance team to help you get the comprehensive business insurance you need, then get a commitment-free quote online from a reputable business insurance team.